Legislature(2025 - 2026)BARNES 124
02/10/2025 01:00 PM House RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Conocophillips Alaska, North Slope Production Update | |
| Presentation(s): Santos North Slope Production Update | |
| Presentation(s): Hilcorp North Slope Production Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 10, 2025
1:02 p.m.
MEMBERS PRESENT
Representative Robyn Niayuq Burke, Co-Chair
Representative Carolyn Hall
Representative Donna Mears
Representative Zack Fields
Representative Dan Saddler
Representative George Rauscher
Representative Julie Coulombe
Representative Bill Elam
MEMBERS ABSENT
Representative Maxine Dibert, Co-Chair
COMMITTEE CALENDAR
PRESENTATION(S): CONOCOPHILLIPS ALASKA NORTH SLOPE PRODUCTION
UPDATE
- HEARD
PRESENTATION(S): SANTOS NORTH SLOPE PRODUCTION UPDATE
- HEARD
PRESENTATION(S): HILCORP NORTH SLOPE PRODUCTION UPDATE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
BARRY ROMBERG, Vice President
ConocoPhillips Alaska
Anchorage, Alaska
POSITION STATEMENT: Co-presented the ConocoPhillips Alaska
North Slope production update.
BEN CARLSON, Vice President
ConocoPhillips Alaska
Houston, Texas
POSITION STATEMENT: Co-presented the ConocoPhillips Alaska
North Slope production update.
PETER LALIBERTE, Vice President
Business Development
Santos LTD
Anchorage, Alaska
POSITION STATEMENT: Presented the Santos North Slope production
update.
JIL FISK, Senior Asset Team Leader
Alaska Operations
Hilcorp North Slope Production
Anchorage, Alaska
POSITION STATEMENT: Presented the Hilcorp North Slope
production update.
ACTION NARRATIVE
1:02:08 PM
CO-CHAIR ROBYN NIAYUQ BURKE called the House Resources Standing
Committee meeting to order at 1:02 p.m. Representatives Hall,
Mears, Fields, Saddler, Rauscher, Coulombe, Elam, and Burke were
present at the call to order.
^PRESENTATION(S): ConocoPhillips Alaska, North Slope Production
Update
PRESENTATION(S): ConocoPhillips Alaska, North Slope Production
Update
1:03:08 PM
CO-CHAIR BURKE announced that the first order of business would
be a North Slope production update by ConocoPhillips Alaska.
1:03:43 PM
BARRY ROMBERG, Vice President, ConocoPhillips Alaska, co-
presented a North Slope production update for ConocoPhillips
Alaska [hard copy included in the committee packet]. He showed
slide 3, which was an overview of ConocoPhillips worldwide and
briefly summarized those operations.
1:06:37 PM
MR. ROMBERG answered a question from Representative Saddler
regarding Conoco's involvement with an oil and gas operation in
China.
1:07:19 PM
MR. ROMBERG proceeded to slide 4 and slide 5, which reviewed
Conoco's operations in Alaska. He stated that Conoco has 36.5
percent interest in Prudhoe Bay, 99 percent of the Kuparuk River
Unit, and 100 percent of the Western North Slope units where the
Willow project is located. He discussed Conoco's history in
Alaska, its field locations, the number workers employed, the
amount of oil produced, Conoco's assets, and projections
regarding the Willow reserve.
1:10:16 PM
MR. ROMBERG responded to a question from Representative Saddler
regarding details of the map on slide 5. He gave a description
of the pipeline network and proceeded to Slide 6, pointing out
Nuna and Coyote which are new projects in the Kuparuk River
Unit. He explained that the oil tax system in Alaska has
stabilized and has encouraged long term investment cycles. He
introduced the topic of horizontal drilling technologies.
1:16:17 PM
MR. ROMBERG responded to a question from Representative Elam
regarding how stability in the tax structure has influenced oil
production.
1:18:11 PM
MR. ROMBERG responded to questions from Representative Hall
regarding the break-down of Alaska hire by explaining
approximately 80 percent of the 1200 Alaska employees live in
the state. He confirmed that finding skilled Alaska labor was
sometimes difficult, and when there were worker shortages, the
company would hire from the Lower 48.
1:19:44 PM
MR. ROMBERG, responding to a question from Representative
Saddler, explained that royalty provisions are not public
information.
1:20:54 PM
MR. ROMBERG responded to questions from Representatives Fields
and Elam regarding challenges faced by workers and what support
services were available. He said he would get back to the
committee with more information.
1:23:05 PM
MR. ROMBERG addressed a question from Representative Coulombe
regarding horizontal wells. He explained that previously wells
were only vertical, but with horizontal drilling techniques, it
is possible to drill into more reserves and extract additional
oil.
1:24:46 PM
MR. ROMBERG, in response to a question from Co-chair Burke, said
there were thousands of Alaska subcontractors used in Conoco
facilities.
1:26:12 PM
MR. ROMBERG completed his presentation by noting that Conoco has
invested eight billion dollars of its own equity and its own
capital at 100 percent ownership. He stated the company's
commitment to Alaska.
1:27:34 PM
BEN CARLSON, Vice President, ConocoPhillips Alaska, co-presented
a North Slope production update for ConocoPhillips Alaska. He
referred to slide 6, titled "ConocoPhillips Alaska Project
Updates," and provided a brief overview regarding the Nuna, West
Sak, Coyote, and GMT2 developments. He explained that first oil
was achieved at the Nuna field in December of 2024, coming in
under budget and ahead of schedule.
1:30:52 PM
MR. ROMBERG responded to a question from Representative Rauscher
regarding ongoing road access litigation. He pointed out that
access had not been blocked, and traffic was flowing despite the
court case.
1:33:16 PM
CO-CHAIR BURKE reminded the committee that there would be a
presentation from the Alaska Department of Law regarding that
litigation.
1:33:33 PM
MR. CARLSON addressed questions from Representative Saddler
regarding viscous oil and some of the challenges it presents.
He then proceeded with slide 7, titled "Willow" which read as
follows [original punctuation provided]:
2024 Key Achievements
16 miles of pipeline
>250 square miles of seismic
Willow Access Road
12 modules delivered
Willow Operations Center Pad
Willow Creek Bridge
2025
Safety, Environment
• Willow Safety Program: Safety is on our minds, on
our watch and in our hands
• Critical focus area in 2025: Slips, trips and falls
• No life-altering injuries or significant
environmental impacts
People &Culture
• Peak season; ~2,400 workers on North Slope (2x 2024)
• Delivering a legacy asset with a high performing
culture consistent with ConocoPhillips' Spirit Values
2025 Construction
• First facilities installed at Willow
• 350 miles of ice road (210 in 2024)
• 30 miles of pipeline (16 in 2024)
• 1,101,000 cubic yards of gravel (887,000 in 2024)
• Installation of two bridges (one in 2024)
1:38:04 PM
MR. CARLSON answered a question from Representative Fields
regarding safety and fatalities. He then discussed Conoco's
emphasis on shared values and commitment to the communities. He
showed slide 8, titled "Integrating Sustainability," which read
as follows [original punctuation provided]:
• Strong local partnerships
• Respect, transparency and collaboration
• Decades of ecosystem-based scientific monitoring
• Science-informed engineering
• Extensive baseline data ensure integrity of
mitigation plans and address stakeholder concerns
• Applying our climate-related risk framework, with
ambition for net-zero operational emissions by 2050
The last two slides in the presentation showed details
concerning community investment followed by a 2024 earnings
review.
1:42:57 PM
The committee took an at-ease from 1:42 p.m. to 1:44 p.m.
^PRESENTATION(S): Santos North Slope Production update
PRESENTATION(S): Santos North Slope Production update
1:44:17 PM
CO-CHAIR BURKE announced that the next order of business would
be an update from Santos regarding North Slope Production.
1:44:27 PM
PETER LALIBERTE, Vice President, Business Development, Santos
LTD, presented a PowerPoint update regarding North Slope
Production, titled "Project Update: Pikka & Beyond" [hard copy
included in the committee packet]. He prefaced his presentation
by recognizing the traditional owners of the land. He showed
slide 2, which read as follows [original punctuation provided]:
Land Acknowledgements
Juneau
Santos acknowledges that today we are meeting on the
traditional territory of the Áak'w ?wáan on Lingít
Aaní and we pay our respects to their history,
experiences, and contributions in taking care of these
lands.
Pikka Project
Santos also acknowledges the land our project is on as
the traditional territory of the Kuukpikmuit Inupiat
and the Inupiat people of the North Slope and we pay
our respects to their history, experiences, and
contributions in taking care of those lands.
1:45:59 PM
MR. LALIBERTE moved to slide 4 and slide 5, which described the
history of Santos and the company's dedication to Alaska.
These slides read as follows [original punctuation provided]:
Who We Are
About Santos
• Headquartered in Adelaide, Australia
• One of Australia's largest domestic gas suppliers
and leading LNG supplier in the region
• Merged with Oil Search in 2021
• Global footprint with operations in Australia, Papua
New Guinea, Timor-Leste and Alaska
• About 4,000 employees globally
About Santos in Alaska
• Santos operates and owns 51% of Pikka; Repsol owns
49%
• Stakeholder support underpinned by Kuukpik and land
use agreement
• Current Alaska workforce of ~370; growing to over
400 by year-end
• Downtown Anchorage office location
About Pikka
• Discovered 2013; 'giant oil field' confirmed by
Horseshoe well in 2017
• Pikka to be net zero* from first oil
• Core position on State land; maximizes revenues for
Alaska and local stakeholders
• Other long-term benefits focused on sustainable
support of community
Depth of Alaska Experience
3,500+ years of combined Alaska experience
2,700+ years L48 + global experience
Operator since March 2018
80% of employees have been hired from within Alaska;
95% live here
Growing Alaska workforce as we progress projects
1:50:18 PM
MR. LALIBERTE discussed the company's commitment to local
communities and showed slide 6, titled "Local Content and
Contribution, Strong stakeholder support across Alaska," which
read as follows [original punctuation provided]:
Long Term Land Use Agreement with Kuukpik
• Subsistence preservation and access with continuous
consultation on planned activity to minimize impact
• Provisions for employment, training and business
development
• Community projects total over $45 million (gross)
Local Content & Contracting
• Committed to local content and sourcing where
possible
• ~68% of Pikka Phase 1 vendor spend through Alaska
vendors
Tax & Royalty Impacts to Local Stakeholders
• ~$7 billion estimated royalty and tax revenue,
including ASRC royalty payments
• North Slope Borough receives 95% of all local tax
revenue from oil and gas-related property taxes
1:52:27 PM
MR. LALIBERTE responded to a question from Chair Burke regarding
the workers and contractors employed by Santos. He explained
that mineral rights for the Pikka field leases are co-owned by
the Alaska and by Arctic Slope Regional Corporation (ASRC), so
"a lot of" royalties will go to ASRC and will subsequently be
shared with other native Alaska communities under the terms of
7(i) and 7(j) [relating to distribution rules set out under the
Alaska Native Claims Settlement Act (ANCSA)].
1:53:29 PM
MR. LALIBERTE addressed a question from Representative Saddler
regarding hiring and benefit packages. He explained that
initially there was an excellent hiring response, but recently
competition from other employers increased, and Santos has put
more effort into attracting people. He described the benefits
package as a "standard corporate renumeration package" with a
base salary, a 401(k), and a bonus structure.
1:55:31 PM
MR. LALIBERTE stated that company shareholders put emphasis on a
minimal carbon footprint. He described the importance of having
the least CO2 intensive project possible through carbon
sequestration, offset credits, and using electricity where
possible. He moved to slide 7, titled "Alaska Decarbonization,
Pikka Phase 1 will be net-zero from first oil." The slide read
as follows [original punctuation provided]:
Avoid
Design and operate efficiently to cost-effectively
minimize direct emissions from operations
Reduce
Direct reduction of operated emissions post-design,
including Point Source Capture (PSC)
Offset
Indirectly reducing emissions through nature-based or
technology solutions, including Direct Air Capture
(DAC)
1:57:54 PM
MR. LALIBERTE responded to comments and questions from
Representative Fields and Representative Mears regarding carbon
sequestration. He explained that many investors are not
interested in decarbonization goals, but some investors are
looking for a smaller carbon footprint.
2:00:27 PM
MR. LALIBERTE moved to slide 8, which showed a map of the Santos
leases and slide 9, which provided a map of Pikka Phase 1 and
included the position of drill pads, wells, processing
facilities, and the seawater treatment plant. He also explained
that 120 miles of pipeline was under construction.
2:05:39 PM
MR. LALIBERTE presented a short video regarding the Pikka site
followed by slide 11, which showed photos comparing the Nanushuk
drill site in the summer of 2023 and the summer of 2024. He
explained that Santos has plans for first oil in 2026 but hope
for an earlier timeline. Fifteen wells have been drilled since
December, and they are 74 percent completed.
2:08:48 PM
MR. LALIBERTE responded to Representative Rauscher's question
regarding the number of drill sites, explaining that there is
one drill site for the current phase, but two other drill sites
are permitted. He segued to slide 12, titled "Bringing Pikka to
Life, Pikka Phase 1 (December 2024),"which read as follows
[original punctuation provided]:
Key Facts:
• $3.2 billion investment
• Peak production: 80,000 bopd
• First oil planned for 1H 2026 Status Update:
• 74% total project completion • All major contracts
awarded and executing
• Wells: 15 of 45 wells drilled
• Target to finish installing 120 miles of pipelines
this winter • 2,200+ contractor jobs on North Slope
this winter with 24/7 operation
2:10:47 PM
MR. LALIBERTE addressed several questions from Representative
Coulombe concerning the road access litigation between Santos
and ConocoPhillips and whether an agreement would result in
additional costs.
2:12:57 PM
MR. LALIBERTE closed his presentation by expressing optimism for
the Pikka unit, predicting 400 million barrels in phase one.
The company sees a 900 million to a billion-barrel opportunity
with the project. He expressed appreciation that Alaska creates
a welcoming environment for development.
2:16:11 PM
MR. LALIBERTE addressed a series of questions from
Representative Fields and Representative Hall regarding
employment challenges and recruitment tactics. He said he would
provide the committee with additional information on the
subject.
2:20:25 PM
The committee took a brief at-ease at 2:20 p.m.
^PRESENTATION(S): Hilcorp North Slope Production Update
PRESENTATION(S): Hilcorp North Slope Production Update
2:21:03 PM
CO-CHAIR BURKE announced that the final order of business would
be a presentation by Hilcorp.
2:21:13 PM
JIL FISK, Senior Asset Team Leader, Alaska Operations, Hilcorp
North Slope Production, presented the Hilcorp North Slope
production update [hard copy included in the committee packet].
She provided history and an overview regarding Hilcorp,
emphasizing their goal of reinvigorating late-life assets in the
industry. She moved to slide 3, titled "Hilcorp in Alaska,"
which read as follows [original punctuation provided]:
1,700 Employees
Over 2,500 contractors
Over 2,000 producing wells
Gross operated production of ~350,000 bopd & ~165
mmcfpd
More than 700 partnerships with local businesses,
generating over $750 Million in annual spend with
Alaska vendors
2:25:02 PM
MS. FISK responded to questions from Co-Chair Burke and
Representative Fields regarding hiring Alaskans. She explained
that of the approximately 1,700 employees, more than 70 percent
lived in Alaska. She discussed Hilcorp's emphasis on Alaska
hire and partnerships with local high schools, universities, and
trade schools. She said the company did not have hiring
incentives in place with their contractors.
2:26:12 PM
MS. FISK showed slide 5, which was a map of the Hilcorp
operations on the North Slope. She described the information on
slide 6, titled "Hilcorp Strategy & Results," and summarized
approaches for improving production of late-life assets. The
slide read as follows [original punctuation provided]:
Arrest Production Decline
Control Costs
Repair & Maintain Infrastructure
Invest for the Long Run
2:27:25 PM
MS. FISK moved to slide 7, titled "Investing in Alaska," which
showed a graph illustrating production from five Hilcorp
drilling rigs on the North Slope. The slide read as follows
[original punctuation provided]:
In 2024, Hilcorp invested ~$870 million into oil and
gas in Alaska and produced 39 million barrels of oil
on the North Slope, a 2% increase compared to 2023.
In 2025, Hilcorp plans to invest over $900 million on
energy projects in Alaska with forecasted production
of 41 million barrels of oil on the North Slope, a 5%
increase compared to 2024.
Hilcorp is investing for growth across all Alaska
assets
2:29:21 PM
MS. FISK provided an overview of Hilcorp's assets, beginning
with the Alaska Island units which include Point Thompson,
Endicott, and Northstar, shown on slides 8 through 14 and which
read as follows [original punctuation provided]:
Point Thompson
Discovered 1977 by Shell
• First oil 2016 Cumulative Production
• 18 million bbls
• 6% recovery efficiency Production Rates
• Oil: 4300 bopd
• Gas: 70 mmcfpd
• Codensate Gas Recycling
Point Thomson 2025 Activity
Maintain stable production from PTU-17
Prepare for planned 2026 drilling of one producer
Endicott
Discovered 1977 by Sohio/Exxon
• First oil 1986
• First Artificial Arctic Islands
• Connected via Causeway
Cumulative Production
• 500 million bbls
• >55% recovery efficiency
Production Rates
• Oil+NGL: 5600 bopd
• Gas: 450 mmcfpd
• Water: 270 mwbpd
Endicott 2025 Activity
Increase recovery by improving fieldwide K2A & K2B
production/injection conformance
Evaluate future coil tubing and rotary drilling
potential
iWAG Pilot (Injecting Water-Alternating-Gas)
Northstar Unit
Discovered 1984 by Shell
• First oil 2002 Cumulative Production
• 193 million bbls
• >60% recovery efficiency Production Rates
• Oil+NGL: 5500 bopd
• Gas: 600 mmcfpd
• Water: 15 mbwpd
Northstar 2025 Activity
Optimize perforation depths for current oil column
Optimize Kuparuk and Ivishak injection
Start produced water injection in the Kuparuk (pending
approval)
Test Sag reservoir for commercial viability
Evaluate future drilling opportunities
2:34:36 PM
MS. FISK, in response to a question from Representative Saddler,
explained that gas produced at Endicott is processed on the
surface and re-injected to maintain reservoir pressure. She
moved to slide 15 and provided an overview of Prudhoe Bay
activity. The slides read as follows [original punctuation
provided]:
Prudhoe Bay Highlights
History / Overview § Discovered in 1968 by Arco/Humble
(Exxon)
First Oil in 1977
Original Oil in Place: >25 billion barrels
Original Gas in Place: >40 TCF
Cum Oil Produced: 13 billion bbls (52%)
Hilcorp Working Interest = 27.1%
830 Hilcorp Employees
1500 Contractors
Production Rates
Oil + NGL: ~265,000 bopd
Gas: 8-9 BCFPD
Water: 2.2 MMBWPD
MS. FISK showed slide 16, titled "Prudhoe Bay Overview," and
pointed out specific details on the map including the roads,
drill sites, wells, turbines, well pads, and pipelines. She
moved to slide 17, titled "Prudhoe Bay Stats: Fun Facts," which
read as follows [original punctuation provided]:
Natural Gas Production:
PBU: 6-9 bscf/d
• Enough to supply all of Germany
Water Moved:
PBU: 2,200,000 bbls/d
• Could fill 168 Olympic sized swimming pools
Oil Production (Gross):
PBU: 230,000 - 275,000 bbls/d
Power Generation:
PBU: 160 MW (capacity)
• Enough to power 133,333 homes
2:38:00 PM
MS. FISK moved to slide 18, titled "Prudhoe Bay Unit Production
Facilities," which showed a flow chart of the processes utilized
at Prudhoe Bay. She pointed out that Prudhoe Bay's primary
constraint is that the facility began with oil production but
transitioned to gas production. She explained Hilcorp's
approach when it moves into a declining field and how they
arrest production decline, drawing the committee's attention to
the illustrations on slide 19 and slide 20. She emphasized the
importance of creative ideas and approaches which were developed
by employees and operators for the purpose of revitalizing the
field. One of those ideas is illustrated in slide 21, titled
"Arctic Cooling Increase Rate," which reads as follows [original
punctuation provided]:
Strip 1.5 miles of insulation off NGL Product line
Initially considered stripping crude oil lines
Less risk/cost to strip NGL
Results
Average additional 1,110 boed
Cumulative total of additional barrels produced
(1/1-4/22): 125,222 bbls
GC2 Crude Coolers
Changed operations of crude coolers for 900 boed
add!
2:43:24 PM
MS. FISK described some of the challenges of working with more
viscous oil and showed slide 22 with a graph displaying oil
production growth resulting from improved techniques. She moved
to slide 23 which provided details regarding the West End
development project. She described methods for working with the
more challenging viscous oil.
2:46:02 PM
MS. FISK responded to questions from Representative Saddler
regarding the difficulties of producing heavier oil. She
described improved results from facility modification, focused
drilling programs, and the use of miscible injectants.
2:48:48 PM
MS. FISK called the committee's attention to slide 24 and slide
25 which provided information regarding compression and its
relation to temperature. She explained that the company focused
on improving the efficiency of existing compressors in addition
to upgrading both the low stage and the high stage compressors.
2:50:08 PM
MS. FISK summarized recent activity at Prudhoe Bay and provided
highlights regarding the Milne Point Unit. She showed slide 26,
titled "Prudhoe Bay 2025 Activity," and slide 27, titled "Milne
Point," which read as follows [original punctuation provided]:
Complete EWE Pipeline project
Drill ~58 wells across Prudhoe (~75% CTD, ~25% Rotary)
Sanction West End Schrader Bluff development plan
Execute high level of maintenance activity (GC1/GC2
TAR, Rotating Equ Overhauls)
Evaluate and test potential of less developed
reservoirs across Prudhoe
Milne Point Highlights
History / Overview
Discovered in 1969 by Conoco
First Oil in 1985
Original Oil in Place: 4.4 billion barrels
Cum Oil Produced: 427 million barrels (10%)
Hilcorp Working Interest = 100%
110 Hilcorp Employees
400 Contractors
Production Rates
Oil: ~50,000 bopd
Gas: 36 MMCFPD
Water: 250 MBWPD
2:56:56 PM
MS. FISK provided drilling rig ownership details in response to
a question from Representative Saddler.
2:57:26 PM
MS. FISK responded to a question from Representative Fields
regarding the number of fatalities on the slope over the past
several years. She explained that safety has become a top focus
and explained the importance of creating a better trained and
more capable work force. She acknowledged the short time
remaining for the meeting and provided a brief summary of the
final slides.
3:01:46 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 3:01 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 021025 HRES ConocoPhillips Alaska Presentation.pdf |
HRES 2/10/2025 1:00:00 PM |
ConocoPhillips Alaska North Slope Production Update |
| 20250210 HRES Pikka Project Update.pdf |
HRES 2/10/2025 1:00:00 PM |
Santos North Slope Production Update |
| 2.10.25 House Resources Hilcorp North Slope Overview_r.pdf |
HRES 2/10/2025 1:00:00 PM |
Hilcorp Alaska North Slope Production Update |
| ConocoPhillips Alaska 2.10.25 HRES Response.pdf |
HRES 2/10/2025 1:00:00 PM |
|
| 20250210 HRES Pikka Project Update - Follow Up.pdf |
HRES 2/10/2025 1:00:00 PM |