ConocoPhillips and BP Commence Production from Kuparuk Field

ConocoPhillips and BP have commenced production from Kuparuk field Drill Site 3S. This drill site will develop the oil accumulation discovered by the Palm exploration wells drilled during the winter 2001 season. The Drill Site 3S (Palm) oil accumulation effectively extends the Kuparuk field on Alaska's North Slope approximately three miles to the northwest. This Kuparuk accumulation is estimated to contain an additional 35 million barrels of recoverable reserves.

Drill Site 3S came on line earlier this month, and is currently producing approximately 16,000 barrels of oil per day (bopd) from three wells.

Production from Drill Site 3S is processed through existing Kuparuk field facilities. This development will help the company meet its stated objective of keeping its Alaska production between 375,000 and 400,000 barrels of oil equivalent per day for the next several years.

Kuparuk, which began production in 1981, is the second largest oil field in North America. The Greater Kuparuk Area, which includes four satellite fields, currently produces approximately 210,000 bopd.

ConocoPhillips Alaska, operator of the Kuparuk field, holds a 55.17 percent interest; BP Exploration holds a 39.19 percent interest; and Unocal, ExxonMobil and Chevron each hold minor interests.