ConocoPhillips challenges permit for Santos’ Alaska oil project

A display shows the emblem for ConocoPhillips on the ground of the New York Inventory Alternate (NYSE) in New York Metropolis, U.S., April 6, 2022. REUTERS/Brendan McDermid

MELBOURNE, April 21 (Reuters) – ConocoPhillips (COP.N) is difficult a land use allow issued by the state of Alaska that will block the event of Santos’ (STO.AX) $3 billion Pikka mission, the most important new oil mission on Alaskan land in a long time.

The attraction marks the newest transfer in a dispute between ConocoPhillips and Pikka developer Oil Search, which Santos acquired final 12 months, over charges that Oil Search would pay ConocoPhillips to make use of roads within the U.S. impartial’s Kuparuk River Unit (KRU), subsequent to Pikka.

Oil Search rejected ConocoPhillips’ proposal to pay $95 million in charges and utilized to the state for a allow to entry the roads, which the Alaska Division of Pure Assets granted on March 29, till the 2 corporations attain a highway use settlement. learn extra

ConocoPhillips is difficult that let on the grounds the division “improperly granted” Oil Search “entry to KRU roads which can be the personal property of the KRU lessees”, in response to a letter dated April 5, and reviewed by Reuters, from the corporate to division Commissioner Corri Feige.

Feige has granted ConocoPhillips till Might 18 to file extra info and given Oil Search till June 7 to reply, in response to an April 8 letter reviewed by Reuters from Feige to the 2 corporations.

Feige denied a request from ConocoPhillips to place a maintain on the land use allow whereas the attraction is being thought of.

The roads dispute casts a cloud on Santos’ effort to draw patrons for its 51% stake in Pikka. ConocoPhillips, the biggest oil producer in Alaska, had earlier held talks with Oil Search to purchase a stake in Pikka and remains to be seen as a possible bidder.

In a quarterly report on Thursday, Santos reaffirmed its steering on Pikka, saying the mission’s Section 1 has obtained all main environmental and regulatory approvals and is on observe to be prepared for a last funding resolution by mid-year.

Reporting by Sonali Paul; Modifying by Christian Schmollinger

Our Requirements: The Thomson Reuters Belief Ideas.