Today, Exxon Mobil Corporation (NYSE:XOM), declared that it has resumed drilling at Point Thomson on Alaska’s North Slope as construction continues toward bringing the initial production system online.
Exxon Mobil Corporation (XOM), is surging 0.34% in the current trade and is now trading at the market price of $84.31. The stock is among the most active of the energy sector as 4.48M changed hands as compared to its average volume of 15.12M.
The initial production system is designed to produce up to 10,000 barrels per day of natural gas condensate and is planned for a startup in 2016. Two injection wells will work in tandem with a production well, cycling up to 200 million cubic feet of natural gas per day through an onsite central processing facility. The condensate will then be transported by a 22-mile pipeline to the Trans-Alaska Pipeline System.
The Point Thomson reservoir holds an estimated 8 trillion cubic feet of natural gas and associated condensate, a high-quality hydrocarbon similar to kerosene or diesel. The gas represents 25 percent of known gas resources on the North Slope and could be used to partially underpin the projected Alaska LNG project. Potential future development will depend on a range of factors such as business considerations, investment climate, and the fiscal and regulatory environment.
As of year-end 2014, ExxonMobil and working interest owners have invested more than $2.6 billion in the development of Point Thomson. About 70 percent of that amount has been spent in Alaska. More than 70 Alaska companies have contributed to the success of the project, with more than 800 people working on-site and an additional several hundred around the state.
Winter construction continues with the opening of a 50-mile ice road from Deadhorse to the central pad.
Point Thomson is located on state acreage along the Beaufort Sea, 60 miles east of Prudhoe Bay, and 60 miles west of the village of Kaktovik.
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. It also manufactures and markets commodity petrochemicals, counting olefins, aromatics, polyethylene and polypropylene plastics, and specialty products; and transports and sells crude oil, natural gas, and petroleum products.