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bp in Alaska

Prudhoe Bay well site

About BP in Alaska BP has spent more than half a century exploring and developing Alaska’s oil and gas resources, while playing an important role in driving economic growth and supporting local communities throughout the state.

The company began working in Alaska in 1959, started drilling at the massive Prudhoe Bay oil field in 1968, and helped build the Trans-Alaska Pipeline System in the mid-1970s. Since Prudhoe Bay began production in 1977, it has generated more than 12 billion barrels of oil — far exceeding initial projections — thanks in part to enhanced oil recovery technologies that BP pioneered. Four decades after starting up, it remains one of North America’s largest oil fields.

BP holds a significant interest in Alaska’s North Slope. The company operates the entire Greater Prudhoe Bay area, which consists of the Prudhoe Bay field and a number of smaller fields. This area produces around 55 percent of Alaska’s oil and gas, and in 2016 it averaged 280,700 barrels of oil equivalent each day. BP owns interests in seven other North Slope oil fields, including Alaska’s newest field Point Thomson. BP has also spent the several years working with industry partners and the State of Alaska to advance the Alaska liquefied natural gas (LNG) project, which, if sanctioned, would move North Slope gas to global markets.

2016 StatisticsEmployees

1,700 people

Operating budget

$1.1 billion

Capital investment

$600 million

Prudhoe Bay Gross Production (operated)

280,700 bopd

BP Net Production (operated & non operated)

107,900 bopd

Taxes and royalties paid (government take)

$464 million

Community investment

$3.5 million

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All 2015 statistical data is based on the full calendar year, unless otherwise noted.

For more information go to bp.com

http://www.bp.com/en_us/bp-us/where-we-operate/bp-in-alaska.html

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BP, partnering with the University of Alaska system, has been instrumental in creating industry-specific programs such as the Asset Integrity and Corrosion Lab, the Alaska Native Science and Engineering program, summer engineering program and Process Technology programs.

The BP Teacher of Excellence program receives more than 1,000 Alaska teacher nominations annually and has recognized nearly 700 teachers over the program’s 20-year history.

BP Energy CenterA true gift to Anchorage and communities across Alaska, the BP Energy Center provides meeting space free of charge to more than 500 community and education groups every year. The center underscores BP’s commitment to making Alaska a great place to live, work and raise a family. The training, meeting, and conference facility has seen more than 150,000 visitors since opening in 2002. During normal business hours, the facility is available at no cost via a reservation system to its users. The Energy Center remains a symbol of BP’s ongoing commitment to community and is the centerpiece of BP’s annual multi-million dollar contribution to Alaska’s not-for-profits.

BP in the communityIn addition to its oil and gas activities in Alaska, BP is heavily invested in communities across the state through donations to non-profit and education groups, scholarship programs, and volunteer hours from its employees. In 2015, BP Alaska donated more than $4.5 million to hundreds of organizations throughout Alaska. Our employees support more than 800 community and education organizations and 230 youth teams.

STEM education growing an Alaska workforceBP supports community and science, technology, engineering and math (STEM) education programs throughout Alaska. Training Alaskans and supporting a quality education system in the state remain key priorities for BP. Of our 1,750 employees in Alaska, 78 percent are Alaskans and we encourage our contractors to hire and train Alaskans as well.

In order to grow an Alaska workforce, BP has invested millions of dollars toward quality education in the state. Since 2001, BP has contributed more than $30 million to the University of Alaska system. In addition to providing financial support, BP partners with the university on research projects, provides mentors and internships for students, and hires Alaska graduates.

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Point ThomsonThe Point Thomson initial production system project start-up in April 2016 with an initial first production rate of approximately 5,000 bpd of condensate and 100 million standard cubic feet per day of recycled gas through two wells. The operator is ExxonMobil with a working interest of 62%, while BP holds a 32% working interest. Located about 60 miles east of Prudhoe Bay along the shoreline of the Beaufort Sea, it is estimated to hold about 25 percent of known North Slope natural gas. The field is considered key to a successful Alaska LNG project. The development of Point Thomson included a multi-billion dollar investment to drill wells, and construct processing facilities, gravel pads, pipelines, and supporting infrastructure including an airstrip, base camp, and sea barge docks and piers. Condensate is a light oil that will be recovered by taking the high pressure gas that is produced and processing it through the planned initial production system facilities. The remaining lean gas will be re-injected back into the reservoir. The long-range development plan for Point Thomson is to drill additional wells and construct additional pipelines and facilities to produce and market gas as part of an Alaska LNG project.

Alaska LNGBP also has spent the past few years working with industry partners and the state government to advance the Alaska liquefied natural gas (LNG) project, which, if sanctioned, would move North Slope gas to global markets. Estimates suggest that this project could create up to 15,000 temporary construction jobs and around 1,000 permanent jobs. However, the current low energy price environment and the increasing number of LNG export projects create a challenge for the Alaska LNG project. BP remains committed to working with all project participants, including the State of Alaska, to try and make the Alaska LNG project successful. “BP has a shared goal with Alaska to develop an economically viable Alaska LNG project,” says BP Alaska President Janet Weiss. “There has been a tremendous change in the economic environment, but BP remains committed to trying to commercialize Alaska’s North Slope gas resources.” The project concept includes a gas treatment plant located on the North Slope, an 800-mile, 42-inch pipeline with at least five off-take points for in-state gas delivery, and a liquefaction plant and terminal at the Nikiski area on the Kenai Peninsula. From there the liquefied natural gas would be loaded on specialized tankers for delivery to markets in Asia. A decision point for progressing to the FEED phase of the project will be considered at the completion of the pre- FEED phase.

Pt. Thomson(ExxonMobil)

Badami(Miller)

Illustration shows what the LNG plant at Nikiski would look like.

Point Thomson

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TAPS FactsTAPS average daily throughput (2015)

508,446 average bbls/day

TAPS total throughput (2015)

185,582,715 bbl

TAPS cumulative throughput since startup

more than 17.2 billion bbl

Pipeline diameter - 48 inches

Construction cost - $8 billion in 1977

Trans Alaska Pipeline System The 800-mile-long Trans Alaska Pipeline System (TAPS) is one of the largest pipeline systems in the world. It stretches from Alaska’s North Slope to Valdez, crossing three mountain ranges, 34 major rivers and streams, and nearly 500 smaller water crossings.

TAPS ownership:

Operator:Alyeska Pipeline Service Company

Owners:BP Pipelines (Alaska) Inc. 48.44%

ConocoPhillips Transportation Alaska, Inc. 29.20%

ExxonMobil Pipeline Company 20.99%

Unocal Pipeline Company 1.35%

www.alyeska-pipe.com

Valdez Marine TerminalStorage capacity - 7.14 million barrels

Construction cost - $1.4 billion in 1977

Other pipelines

In addition to TAPS, BP owns:

38% — Kuparuk Pipeline

50% — Milne Point Pipeline

32% — Point Thomson Export Pipeline

Trans Alaska Pipeline

Valdez Marine Terminal

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Alaska Clean Seas:

Environment

BP’s presence on the North Slope for nearly half a century has not only helped advance technology in oil and gas development and engineering, but also has vastly increased understanding of Arctic ecosystems—from weather and climate to the flora and fauna that inhabit this northern region—both on land and in the sea.

Before companies like BP began searching for oil on Alaska’s North Slope in the 1960s, most ecological studies in the far north were funded by government programs in the name of basic science. Little was known about what is sometimes called “applied ecology,” or the study of what happens to biological communities altered by human activities.

The discovery of the giant Prudhoe Bay oil field in 1968 and its subsequent development sparked interest in Arctic applied ecology. Scientists near and far wanted to know how development would impact the region’s plants and animals. At the same time, they wanted to know how those impacts could be managed. Although government programs have remained engaged in the Arctic, BP and other oil and gas producers have actively pursued applied ecological research on the North Slope.

BP has actively supported scientists working through university, agency, consulting and nonprofit organizations. Together, BP’s long-term studies, along with studies by others, provide an annual snapshot of ecosystem changes in the oilfields. Some of the changes, such as nest initiation dates of shorebirds and soil temperatures, show trends over time. Other changes reflect the ever-changing nature of nature, with wide ranges from one year to the next driven by everything from weather, to interactions among species, to disease.

Each year, BP summarizes results from a number of long-term ecological studies in a report intended for a genera l audience. The report includes chapters on weather and climate, plant communities, permafrost, tundra nesting birds, brant and snow geese,

swans, ravens, fox dens, polar bears, coastal fish, underwater sounds, whale calls, seals, and wildlife events.

Alaska Clean Seas (ACS), the North Slope-based oil spill response cooperative that serves BP Alaska and other North Slope oil producers, reached a milestone of 2 million hours without a Lost Time Accident.

ACS is recognized as a world leader in Arctic land and marine oil spill response. It maintains and operates nearly $100 million of oil spill response equipment - one of the largest collections of oil spill response equipment in the Pacific Northwest.

ACS has full-time employees and employs personnel from local villages and subcontractors to respond to seasonal workloads and responses. ACS is also responsible for training North Slope Spill Response Teams that are immediately available to support response activities. There are 170 fully-qualified and highly-trained personnel ready to assist on any given day.

For more than 30 years, as a not-for-profit cooperative, ACS has provided world-class Arctic expertise with an exemplary commitment to safety and delivering unmatched support to the co-op members on Alaska’s North Slope.

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Greater Prudhoe Bay Prudhoe Bay oil production passes 12.3 billion barrels Since Prudhoe Bay began production in 1977, it has generated 12.3 billion barrels of oil, far exceeding initial projections, in part to enhanced oil recovery technologies that BP pioneered. Four decades after starting up, it remains one of North America’s largest oil fields.

BP operates the Greater Prudhoe Bay area, which consists of the Prudhoe Bay field and a number of smaller fields. This area produces around 55 percent of Alaska’s oil and gas, and in 2015 it averaged 281,800 barrels of oil equivalent each day. BP’s net production from the area is 66,100 barrels of oil equivalent each day.

Safety and integrity programs remain our primary focus.Integrity programs will focus on fire and gas systems, safety systems, pipeline renewal and facility siting. As a number one priority, safety will be strengthened and ensured through increased contractor management/engagement, as well as a re-invigorated control of work program.

Enhanced oil recovery strategies The challenge for the entire industry is to respond to a low oil price environment in a way that improves efficiency and accelerate innovation. BP’s goal is to minimize oil production decline Techniques that have enhanced oil recovery and boosted overall oil recovery include: large-scale gas cycling, water flooding around the periphery of the field, miscible gas injection and water-alternating gas injection. Improved reservoir analysis and delineation; advanced drilling techniques such as horizontal and multi-lateral, along with advanced well completion methods have also made significant contributions.

Prudhoe Bay seismic BP completed a major North Prudhoe Bay seismic survey in 2015. The $78 million, 3D seismic survey covered 190 square miles and gathered geophysical data from both the onshore and offshore areas within Prudhoe Bay. The survey will support land-based oilfield development and drilling.

Prudhoe Bay satellites Satellite fields are smaller accumulations of oil that can often be developed using existing infrastructure. The 2015 average daily production from Prudhoe Bay satellites is about 25,200 barrels of oil. BP’s net share of that production is about 5,800 barrels of oil. There are five satellite fields currently producing and the liquids are processed through the field’s main facilities.

Aurora, Borealis, and Midnight Sun satellite fields are produced from similar formations, at 6,500 to 8,000 feet below sea level. Orion and Polaris fields both produce the difficult viscous oil from the Schrader Bluff formation, at depths of 4,000 to 5,000 feet below sea level.

NPRA

0 5 10

MILES

ANWR

Badami

Northstar

EiderEndicott

Meltwater

Liberty

Palm

Point McIntyreAlpine

Pt. ThomsonLisburne

West Sak

Niakuk

Schrader Bluff

Milne Point

Tabasco

Tarn

Orion

Borealis

Kuparuk

Aurora

Midnight SunPolaris

Prudhoe Bay

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Field Data

Participating Field Area

Original Oil in PlaceOriginal Gas in Place

Cumulative Oil Production

Production (12/31/15)(barrels of oil)

Current Rates (12/31/15)

Oil (thousands barrels/day)

Gas (MMcf/day)

Water (thousands bbl/day)

Number of Wells

Oil ProducersGas InjectionWater InjectionWAG Injection*

217,827 acres(includes satellite fields)

24 billion bbls40 tcf

Gross Field

13.1 billion

Gross Field

2356,902843

6763114313

3,113 acres

60 million bbls

Gross Field

20.3 million

Gross Field

1311

2020

10,480 acres

230 million bbls

Gross Field

40.2 million

Gross Field

61614

170131

BP (Operator) ~26%ConocoPhillips ~36%ExxonMobil ~36%Chevron ~1%


Owners

Owners





Field Data

Participating Field AreaOriginal Oil in Place


Production (12/31/15)(millions of barrels of oil)



Gas (MMcf/day)


Number of Wells


11,684 acres

450 million bbls

Gross Field

19.6

Gross Field

436

80113

16,840 acres

350 million bbls

Gross Field

79.2

Gross Field

91919

270145

* Water Alternating Gas Injector

19,842 acres

3.2 billion bbls

Gross Field

32.9

Gross Field

554

70155

Oil Fields

Oil Fields

Prudhoe Bay

Orion

Midnight Sun

Polaris

Aurora

Borealis

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Point McIntyre Located seven miles north of Prudhoe Bay, the Point McIntyre field was discovered in 1988 and production started in 1993. Point McIntyre contained an estimated 880 million barrels of oil in place. The field’s production peaked in 1997 at 163,000 barrels per day. In 2015, production averaged about 16,200 barrels of oil per day. BP produces the field from two gravel drill site pads. Production rates are maintained through drilling of new wells, enhanced oil recovery methods and facilities upgrade.

Niakuk The Niakuk field is located offshore, but produced through onshore facilities. The field contained about 400 million barrels of oil in place. Production in 2015 averaged about 1,300 barrels of oil per day from the lower Cretaceous Kuparuk River formation, a structurally and stratigraphically complex formation.

Lisburne The Lisburne field is a complex, fractured carbonate reservoir that lies underneath and adjacent to the main Ivishak reservoir at Prudhoe Bay. However, fluid may flow a hundred times more easily in the Ivishak reservoir than it does in the Lisburne formation. The field was discovered in 1968 along with the Prudhoe Bay field and came on-streamin late 1986. The field contained an estimated 2.4 billion barrels of oil in place. Production averaged about 4,900 barrels of oil per day in 2015. The 2015 Lisburne well development program utilized a new well design, completion design and stimulation technology in order to maximize reservoir exposure and increase ultimate recovery. These were the first new Lisburne production wells drilled in nine years. The combined initial rate from three new wells averages 3,500 barrels of oil per day (bopd), which exceeds the initial expectations. Lisburne remains a challenge to develop because it is the highest complexity index of any reservoir in BP’s worldwide portfolio.

NPRA

ANWR

Endicott

Badami

Northstar

Eider

Liberty

Midnight Sun

Tabasco

Palm

Alpine

Pt. Thomson

Aurora

West Sak

Milne Point

Schrader Bluff

Tarn

Kuparuk

Prudhoe Bay

0 5 10

MILES

Point McIntyre

Niakuk

Borealis

Polaris

Lisburne

Lisburne field

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Flow Station 1


Owners BP (Operator) ~26%ConocoPhillips ~36%ExxonMobil ~36%Chevron ~1%


Field Data

Participating Field AreaOriginal Oil in PlaceOriginal Gas in Place





Gas (MMcf/day)


Number of Wells


7,284 acres

400 million bbls

349 bcf

Gross Field

96.4 million

Gross Field

1219

10050

79,999 acres

2.5 billion bbls

2,300 bcf

Gross Field

184 million

Gross Field

51015

25360


10,828 acres

880 million bbls

832 bcf

Gross Field

473 million

Gross Field

1619292

34185

Oil Fields Point McIntyre Niakuk Lisburne

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Field Data

Participating Field AreaOriginal Oil in Place (gross)

Original Gas in Place




Oil (thousands bbl/day)

Gas (MMcf/day)


Number of Wells


66,651 acres

8.9 billion bbls

613 bcf

Gross Field

329

Gross Field

1912128

1194910

Oil FieldsMilne Point - KuparukSchrader Bluff

Owners Hilcorp (Operator) 50% BP 50%


Milne Point Unit Located about 25 miles west of Prudhoe Bay, Milne Point has become an innovator in the application of new reservoir technology to enhance oil recovery. In 2015 the Milne Point Unit average production was 18,700 barrels of oil per day. BP’s net production is approximately 8,000 barrels of oil per day. Cumulative oil production from Milne Point is 328 million barrels of oil. Milne Point was discovered in 1969 by Conoco and began production in 1985. Today, the field is operated by Hilcorp and jointly owned by Hilcorp and BP. Milne produces oil from three main reservoirs. The Kuparuk and the Sag River reservoirs are lighter oil horizons and the Schrader Bluff produces viscous oil, with the consistency of maple syrup. The viscous oil is colder and thicker than other North Slope oil. All production fluids are processed through the Milne Point Unit production facilities. Hilcorp also operates the Liberty prospect, owned 40% by BP. BOEM is preparing the Draft Environmental Impact Statement on the Liberty development and production plan.

NPRA

0 5 10

MILES

ANWR

Endicott

Sag Delta North

Badami

Eider

Meltwater

Liberty

MidnightSun

PalmAlpine

Pt. Thomson

Aurora

Lisburne

Niakuk

Borealis

Polaris

Tabasco

TarnPrudhoe Bay

Kuparuk

West Sak

Milne PointSchrader Bluff

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Greater Kuparuk Area Discovered in 1969, Kuparuk began production in December 1981 and achieved a peak rate of 324,000 barrels per day in 1992. The producing reservoir is composed of Cretaceous-age Kuparuk sands at depths of 5,500 to 6,500 feet. The Greater Kuparuk Area produced 104,200 barrels of oil per day in 2015. BP’s net production is 33,800 barrels of oil per day. Cumulative production from the Greater Kuparuk Area is 2.6 billion barrels of oil. BP holds approximately 39 percent ownership in the Greater Kuparuk Area, which includes the satellite fields of Tarn, Tabasco, Meltwater and West Sak. ConocoPhillips is the field operator. The production from these fields is processed through the Kuparuk production facilities. Processed oil from Kuparuk is piped 28 miles to Pump Station 1, the beginning of the Trans Alaska Pipeline System.

Kuparuk satellite fields The Kuparuk satellites include the fields of Tarn, Tabasco, Meltwater, and the viscous oil West Sak field. In 2015, the combined average daily production from the Kuparuk satellite fields averaged 25,100 barrels of oil per day. The Tarn satellite field located south of the Kuparuk field produced about 9,300 barrels of oil per day in 2015. Like the Tarn field, Tabasco began production in 1998. The Tabasco field is a small development that produces relatively viscous oil, and is situated to the west of the Kuparuk field. Located 10 miles south of Tarn, Meltwater was discovered in 2000 and produces from a single drill site.

West Sak Discovered in 1971, West Sak is a shallow, viscous oil reserve situated above the Kuparuk reservoir. The West Sak core area contains 1.5 billion barrels of oil but the oil is cold, thick and difficult to produce. Long-term production from West Sak began in 2004. In 2015, West Sak oil production averaged 12,600 barrels of oil per day. The cumulative production from West Sak is about 79 million barrels of oil.

NPRA

0 5 10

MILES

ANWR

Endicott

Sag Delta North

Badami

Northstar

Eider

Liberty

MidnightSun

Alpine

Pt. Thomson

Aurora

Lisburne

TarnMeltwater

Niakuk

Borealis

Polaris

Schrader Blu�

Palm

Milne Point

Prudhoe Bay

Kuparuk

Tabasco

West Sak

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Field Data

Participating Field AreaOriginal Oil in PlaceOriginal Gas in Place


Production (12/31/15)(barrels of oil)



Gas (MMcf/day)


Number of Wells


182,000 acres

5.9 billion bbls2.8 tcf

Gross Field

2.1 billion

Gross Field

79209516

4432927023

17,955 acres

7.7 billion bbls

Gross Field

80 million

Gross Field

14148

520430

3,000 acres

160 million bbls

Gross Field

18.6 million

Gross Field

2013

5020

ConocoPhilips (OP) 55.2%BP 39.2%Chevron 5%ExxonMobil 0.6%


ConocoPhilips (OP) 52.2%BP 37%Chevron 5%ExxonMobil 5.8%



Owners

Owners

Field Data

Participating Field AreaOriginal Oil in Place





Gas (MMcf/day)


Number of Wells


6,263 acres

100 million bbls

Gross Field

17.6 million

Gross Field

2110

8500


10,350 acres

230 million bbls

Gross Field

110.4 million

Gross Field

92116

366142

Oil Fields

Oil Fields

Kuparuk

Tarn

West Sak

Meltwater

Tabasco

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Fairbanks

Trans AlaskaPipeline

Anchorage

Valdez

Juneau

Prudhoe Bay

ANWR

NPRA

Oooguruk(Caelus)

Nikaitchuq(ENI)

Fiord(ConocoPhillips)

Alpine(ConocoPhillips)

Nanuq(ConocoPhillips)

Tarn(ConocoPhillips)

BP 39%

Meltwater(ConocoPhillips)

BP 39%

Kuparuk(ConocoPhillips)

BP 39%

Milne Point(Hilcorp)BP 50%

Northstar(Hilcorp)

Point McIntyre(BP - 26%)

Niakuk(BP - 26%)

Endicott(Hilcorp) Liberty Prospect

(Hilcorp)BP 40%

Badami(Miller)

Badami Pipeline

Pt. Thomson Pipeline

Alpine Pipeline

Pt. Thomson(ExxonMobil)

BP 32%

MILES

1050

Lisburne(BP - 26%)

West Beach(BP - 26%)

GreaterPrudhoe Bay

(BP - 26%)Deadhorse

Operated by others(BP equity)

Trans AlaskaPipeline System

(TAPS)BP 48%

Nuiqsut

NPRA

ANWR

MAP LOCATION

Original Oil in Place ~ 65 billion bblsOriginal Gas in Place 62 tcf

Cumulative Production BP Net Gross Field

Oil (12/31/15)(billions of barrels of oil) 6.5 17.3*

Current Rates (12/31/15) BP Net Gross Field

Oil (thousands bbl/day) 125 405

*TAPS Throughput since 1977

BP North Slope Oil Fields

North Slope factsThe North Slope is a flat, treeless wetland, which extends 88,000 square miles, from the foothills of the Brooks Mountain Range to the Arctic Ocean and west from the Canadian border to the Chukchi Sea. BP’s footprint on the North Slope encompasses about 312 square miles.

Location Prudhoe Bay is located about 600 air miles north of Anchorage and about 1,200 miles south of the North Pole. It is about 250 miles north of the Arctic Circle. This region includes the Arctic National Wildlife Refuge (ANWR), the Central Arctic (area between the Colville and Canning Rivers), the National Petroleum Reserve Alaska (NPRA), the Beaufort Sea Outer Continental Shelf (OCS), and the Chukchi Sea OCS areas.

Weather Winter temperatures across the North Slope frequently dip to minus 30 degrees Fahrenheit with extreme winds, resulting in severe chill factors. The lowest recorded temperature was minus 62 degrees Fahrenheit. The highest recorded temperature was 83 degrees Fahrenheit. Even in the warmest month, July, the average daily temperature is only 45 degrees Fahrenheit.

Producing fieldsTo date, oil production has been from fields located in the Central Arctic, an area spanning 122 miles from the Colville to Canning Rivers. These fields are primarily on state lands and adjacent waters of the Beaufort Sea. Northstar produces from both state and federal waters in the Beaufort Sea.

Roads and causeways BP maintains more than 300 miles of roads and causeways in Greater Prudhoe Bay. To move materials and supplies to remote locations temporary ice roads may be constructed during the winter.

Summary

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BP Exploration (Alaska) Inc.900 E. Benson Blvd.P.O. Box 196612Anchorage, AK. 99519-6612

Main switchboard: 907-561-5111 Alaska Press Office: 907-564-5143alaska.bp.com

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bp in Alaska BP in Alaska BP has spent more than half a century exploring and ... Alaska Clean Seas ... to seasonal workloads and responses