State Approves ExxonMobil’s Point Thomson Expansion Plan
Decision will increase oil production; adds momentum to Alaska LNG Project
December 22, 2017 ANCHORAGE – The State of Alaska has approved ExxonMobil’s plan to engineer the expansion of the Point Thomson project on the North Slope, with state and company officials calling it a positive step to achieve major gas sales and increase oil production.
“The Alaska LNG Project has been endorsed by the Trump Administration and the Chinese government. Interest in this project has grown immensely 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.,” said 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,” Governor Walker continued. “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.”
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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 August 29. In an Oct. 12, 2017, letter, ExxonMobil responded to the state decision with new information that addressed the division’s concerns.
“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.
Read the division’s approval letter here.
