Thursday, March 27, 2008

Point Thomson - In the Balance

From the Alaska Journal of Commerce: "ExxonMobil submitted a plan Feb. 19 to develop a $1.3 billion gas condensate production and gas recycling plant at Point Thomson that would produce 10,000 barrels per day of liquid condensates, which can be blended with crude oil and shipped through the trans-Alaska oil pipeline."

At last count this was plan #23 and ExxonMobil has committed to start work next winter. The economics of developing a high pressure formation are complex and it's good to see that the rate of return is acceptable for a firm capable of producing it.

The question remains - Will the State of Alaska accept the proposal and allow Exxon to go work, or is it back to court house for another round?

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