Santos Ltd. played down on April 22 an Alaska road access dispute with ConocoPhillips, saying their feud was not slowing work on the $3 billion Pikka oil project or the Australian gas producer's efforts to sell its stake in it.
Santos rejected a proposal by ConocoPhillips to charge $95 million for long-term access to roads on the U.S. oil and gas producer's Kuparuk River Unit oil fields, next to the Pikka project run by Oil Search, which Santos acquired last year.
Instead, Santos applied to the Alaska Department of Natural Resources for a land use permit, which it received on March 29, pending an agreement between the two companies on the long-term access.
ConocoPhillips challenged that decision on April 5 and the department's commissioner, Corri Feige, has given Oil Search until June 7 to respond before she decides on the appeal.
"There has been no impact to access and the land permit granted to Santos by the Division of Oil and Gas on March 29 remains current," a Santos spokesperson said in an email.
While the company expects the Pikka project to be ready for a final investment decision by mid-year, it is also trying to sell its 51% stake in the project, as it looks to raise up to $3 billion from asset sales this year.
"There has been no impact on the selldown process," the spokesperson said.
Recommended Reading
Jefferies: With Permian Locked Up, E&Ps Hunt for New L48 Runway
2024-11-26 - With the core of the Permian Basin largely locked up, “intrepid operators” are hunting for runway in more nascent Lower 48 basins and in less developed Permian benches.
PHX Minerals Explores Sale After Rejecting Acquisition Bids
2024-12-13 - PHX Minerals hired bankers to explore a potential merger or sale of the firm, which manages assets across the Midcontinent and Haynesville Shale play. PHX has rejected multiple unsolicited acquisition bids in the past two years.
CEO: Range Passes On M&A Fervor For Now: ‘We Didn’t Have To’
2024-11-07 - While the rest of the E&P sector bought, merged and consolidated, Range Resources sat on the sidelines in Appalachia because it already has plenty of drilling inventory, CEO Dennis Degner says.
Chevron, in Hess Holding Pattern, Sells $6.8B in Alaska, Canada
2024-10-08 - Chevron Corp., waiting to close a $55 billion takeover of Hess Corp., is selling off non-core assets in Canada and Alaska.
Exclusive: Surge Energy Seeks Midland M&A with $1.3B in Dry Powder
2024-11-19 - Surge Energy is one of the largest private oil producers in the Permian Basin. With $1.3 billion in dry powder to put to work, Surge is scouring the northern Midland Basin for M&A, executive Travis Guidry told Hart Energy.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.