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We have a long and proud history in Alaska. As the state’s largest oil producer, we have been a significant player in exploration and development in Alaska for over 50 years. Using innovative ideas and the latest technology, we continue to seek new and better ways to responsibly deliver Alaska’s energy potential.

We are also one of the largest holders of federal and state leases in Alaska, with significant interests in the National Petroleum Reserve-Alaska (NPR-A), as well as other undeveloped acreage on the North Slope. We have drilled more than 60 exploration wells in ALASKA since 2000, including 29 in the NPR-A.
Where We Operate

Our primary North Slope assets include the ConocoPhillips operated Kuparuk and Alpine fields. Additionally, we have significant interests in the Prudhoe Bay field and the Trans-Alaska Pipeline System. With the development of the CD5 drill site, we have expanded our Alpine field to the west, across a channel of the Colville River, to become the first company to commercially produce oil on Alaska Native Lands from within the boundaries of the NPR-A. In addition, we are continuing efforts to develop the Greater Mooses Tooth Unit located entirely within the NPR-A.


Innovation in the Arctic

Part of the Alpine Field, CD5 is the first commercial oil development on Alaska Native lands within the boundaries of the National Petroleum Reserve-Alaska (NPR-A).

Initial development plans call for 15 wells by early 2017. Peak gross production was anticipated at 16,000 barrels of oil per day (BOD), but it is currently producing about 20,000 BOD. In addition to the production drill site and on-site facilities, the project includes a 6-mile road, four bridges, 32 miles of pipelines, and miles of communications and electrical infrastructure that tie CD5 back to the main Alpine facilities. Oil from CD5 is sent back to Alpine CD1 for processing before it is sent through the Alpine and Kuparuk Pipelines to the Trans-Alaska pipeline. CD5 represents a total project investment of more than $1 billion (gross).

CD5 is situated within the boundaries of the NPRA on land owned by Kuukpik Village Corporation. Kuukpik, the village corporation for Nuiqsut, is the surface land owner and Arctic Slope Regional Corporation (ASRC) owns the majority of the mineral rights.

  • CD5 – First production October 2015
  • Initial capital cost: $1 billion
  • Peak construction employment: ~700 jobs
  • Averaging 20,000 BOPD vs. 16,000 BOPD target gross peak rate
  • Major fabrication activities in Anchorage and Fairbanks

The next phase of development is approved and underway:18 wells, $190 million

Watch videos about CD5

Read more about the project

Regulations

Our industry is highly regulated at all levels – projects in the National Petroleum Reserve-Alaska (NPR-A) are facing especially stringent regulations. Environmental protection requirements and practices are stringent – there are 265 mitigation measures and best practices already in place for NPR-A development. Subsistence activities are respected and protected, with approximately half (11 million acres) of NPR-A unavailable for oil and gas leasing to protect bird and caribou habitat as well as subsistence hunting.

The BLM track record of escalating cost could eventually drive responsible oil and gas development out of NPR-A. Projects in the NPR-A should not be burdened with excessive or unsupported/unfocussed mitigation requirements and projects should go through the permitting process as efficiently and in as timely a manner as reasonably possible. Many Alaska Native communities and entities are supportive of NPR-A development and the revenue it generates for community projects.

Economic Impacts

Resource development on Alaska’s North Slope is unique in many ways. Benefits from resource development - such as public royalties, taxes and revenue sharing - are much more likely to directly impact the local population than in other areas.

The State of Alaska estimates that 90 percent its revenue comes from the oil and gas industry. It relies on revenue from resource development to support basic services and the economy in general. The state budget lingers in a precarious position, but increased investment due to tax changes in 2013 is resulting in jobs, production and improved State revenue outlook. Without new investment in developments, oil production will be negatively impacted, as will Alaska's economy.

We plan for continued investment on the North Slope, with new rigs and several multi-billion dollar projects in the planning stage. But high costs, an unstable tax environment and federal overreach threaten the economics of these projects. Layers of bureaucracy, constantly evolving federal regulations – not laws – that are ill-defined and subjective, and uncertainty within the state tax structure create a challenging environment. Continued investment will require a stable fiscal environment, and predictable regulations.

In Communities

We take pride in being a great neighbor and a responsible corporate citizen in the communities where we live and work and contribute to the well-being of Alaskans through charitable giving, employee volunteerism, and civic leadership. And we work diligently to build inclusive, honest and respectful relationships with our stakeholders, particularly with our North Slope neighbors who live near our operations. We engage with them openly and transparently in order to promote understanding of our activities, learn more about local concerns and collaboratively seek solutions.

We are committed to building a strong and visible presence in nearby communities, simultaneously creating opportunities for Alaska residents. And we create open lines of communication through community meetings, updates to local governments and tribal councils, and one-on-one conversations with community members. Read more about our support of programs on the western North Slope.

Read more about our community involvement on the Western North Slope.

Operating In Sensitive Environments

We place the highest priority on the care and protection of the environment. The harsh arctic conditions create unique challenges – and opportunities. Over the years, we have developed innovative technologies that minimize our effect on this unique land. We also work to ensure that Alaskans benefit from our efforts – not only in the form of a solid economy, but also through contributions to communities and education.

We have developed innovative technology that minimizes our effect on the environment of this inimitable land. And we believe Arctic exploration and development must be conducted at a measured pace that matches available technology, with major emphasis on environmental stewardship. The only way to truly protect the environment is to study it and understand it. Working with federal, state and local regulators, as well as local communities, we routinely develop and conduct multi-year baseline environmental studies programs. Our ongoing world-class research programs help us understand the environment and identify better ways to protect it.

Minimizing footprint

When it comes to minimizing the company's environmental footprint, no idea is too small and industrial operations aren't the sole focus. ConocoPhillips Alaska is working hard to ensure that the company's philosophy on the environment is part of the culture for all employees at all Alaska facilities. From reducing the size of our North Slope drilling pads to installing energy efficient lighting, recycling and using eco-friendly cleaning products, ConocoPhillips is working to be the best environmental steward it can be at all levels of the organization.

We recently contracted for a new Extended Reach Drilling (ERD) rig, with an expected delivery in 2020. It will be used first at Alpine, allowing a reach of about 125 square miles from a single drill site – almost double current capability - and can be deployed anywhere on the North Slope.

The ERD reduces development footprint, minimizes environmental impact, and allows for fewer drilling pads.