Executive: Hilcorp plans to spend $285M in Alaska this year
Jan. 18, 2018
KENAI, Alaska (AP) — Oil and gas company Hilcorp announced that it plans to spend about $285 million in Alaska during 2018.
Company Operations Manager Chad Helgeson made the spending plans public on Jan. 10 at a forum in Kenai, the Peninsula Clarion reported Tuesday.
Helgeson said the largest portion of the planned investment — $106 million — will go toward infrastructure upgrades, such as replacing compressor control systems in Hilcorp's pipeline network with modern digital controllers.
He said $83 million will go toward new drilling and $96 million will go to operating expenses, taxes and salaries.
Hilcorp has been Cook Inlet's largest oil and gas extractor since buying many of the local assets of Marathon and Chevron in 2011 and 2012. It has since acquired leases on 20 hydrocarbon fields and 14 of the 16 platforms in Cook Inlet.
The privately-owned Texas-based company supplies much of the natural gas that regional utilities use to generate electricity and heat.
It has plans for seven new Cook Inlet wells in 2018, five of which will be offshore oil and gas wells from its Steelhead platform into the McArthur River field, one of Cook Inlet's most productive areas.
The offshore drilling would begin in April, Helgeson said.
"We're still working on a lot of permitting and lease acquisitions and development opportunities, so those will be later in the year if we actually get to do some exploration for new gas reservoirs," Helgeson said.
This version corrects the spelling of the company in the 1st paragraph, Hilcorp not Hillcorp.
Information from: (Kenai, Alaska) Peninsula Clarion, http://www.peninsulaclarion.com