The State of Alaska approved ExxonMobil’s plan to engineer the expansion of the Point Thomson project on the North Slope, as state and company officials consider it a positive step to achieve major gas sales and increase oil production.
Interest in this project has grown significantly in the last 45 days, due to the historic Joint Development Agreement between the State of Alaska, Sinopec, the Bank of China and the Chinese Investment Corp., explained Governor Bill Walker.
“Our approval of the Point Thomson to Prudhoe Bay pipeline plan adds to the momentum of the Alaska LNG Project and demonstrates the commitment of the Point Thomson working interest owners to move gas from Point Thomson into Alaska Gasline Development Corp.’s 800-mile pipeline,” he said. “The expansion project also helps build a Stronger Alaska, because it will increase oil production out of Point Thomson by 50,000 barrels per day.”
Point Thomson is located on state acreage along the remote Beaufort Sea, 60 miles east of Prudhoe Bay and 60 miles west of the village of Kaktovik.
The Division of Oil and Gas had previously approved ExxonMobil’s plan for continued liquid condensate production from Point Thomson, but declined to approve the expansion-related plan. The division asked for additional information on 29 August. On 12 Oct., ExxonMobil responded to the state decision with new information that addressed the division’s concerns.
ExxonMobil is developing initial production facilities to produce up to 10,000 barrels per day of natural gas condensate. The condensate will then be transported by a 22-mile pipeline which connects into the Trans Alaska Pipeline System.
“It’s clear that ExxonMobil is committed to commercializing North Slope gas, particularly from Point Thomson. This helps align the company’s work in Alaska with the State of Alaska and AGDC,” said Natural Resources Commissioner Andy Mack.
