• Forecast
  • News Tip
  • Categories
Temperature Precipitation
Estimated read time
2m 2s

Doyon and ConocoPhillips announce joint drilling rig venture

By Rhonda McBride 12:39 PM July 28, 2014
FAIRBANKS –

Doyon Limited and ConocoPhillips announced a joint venture Monday.

Doyon Limited is the regional Native corporation for Interior Alaska. As part of the agreement, Doyon’s subsidiary — Doyon Drilling — will build a new $100 million rotary drilling rig for ConocoPhillips. Doyon also has a five-year contract with options to renew in the future.

The announcement came at Doyon headquarters in Fairbanks with board members present.

“It’s certainly an exciting day for Doyon,” said Aaron Schutt, president and CEO of Doyon. “We don’t get the opportunity to build large North Slope rigs every year, sometimes even every decade.”

Mike Wheatall, ConocoPhillips’ manager for drilling wells in Alaska, called the drill rig, to be named Doyon 142, unique in the world.

“It will be able to operate between Kuparuk and Alpine. There is no rig on the North Slope right now that can cross the Colville River in the wintertime and still fit on all of our wells at Alpine,” Wheatall said.

Engineering for the rig is mostly complete, with construction already underway. It should be brought on line by April of 2016.

There was no attempt to hide the fact that the timing of the announcement comes just before a vote in the August primary to repeal oil tax reform passed by the Legislature last year.

“ConocoPhillips believes in Alaska,” Wheatall said. “So this is good news for us, Doyon, and for Alaskans. Doyon 142 will be the third rig we’ve added to North Slope operations since passage of the tax reform.”

Sen. Bill Wielechowski, one of the proponents of Ballot Measure 1’s “Vote Yes” campaign to repeal oil tax reform created by Senate Bill 21, said he’s not surprised to hear announcements like the one from Doyon and ConocoPhillips.

“We knew we were going to see press releases and brass bands every time something positive happens,” Wielechowski said.

While Wielechowski acknowledges that oil industry investments are up in Alaska, he said this was anticipated under the old ACES tax regime, due to increased activity at Pt. Thomson.

ACES, Alaska’s Clear and Equitable Share, was a tax reform measure passed during former Gov. Sarah Palin’s administration.

Wheatall said if voters overturn SB21 in August, it would not have an impact on the Doyon rig because the two companies have a five-year contract. But Wheatall said ConnocoPhillips might be forced to scale down other projects.

Doyon said the new drilling project will put about 100 people to work and support hundreds of other indirect jobs.

Latest Stories

  • Politics

    New Alaska Legislature starts session with fresh faces, old problems

    by Liz Raines on Jan 17, 20:16

    A new Legislature met in Juneau Tuesday to start work on closing the state’s yawning fiscal gap. The first day of a legislative session in the Alaska State Capitol feels a lot like the first day of school. Some of last year’s members have graduated and moved on, while a new class of freshman lawmakers […]

  • Weather

    KTVA Weather Lab: Ravenwood Elementary School

    by Melissa Frey on Jan 17, 19:44

    In this week’s KTVA Weather Lab, I visited Ravenwood Elementary School, where the third-graders are learning all about meteorology. I also answered the KTVA Weather Lab Question of the Week: What is the most snow Alaska has ever had? Next week I’ll answer a weather question from Chester Valley Elementary School. Every Tuesday, Melissa Frey will take […]

  • Weather

    Winter enthusiasts happy to have more snow this year

    by Melissa Frey on Jan 17, 19:39

    The storm may be over, but the snow is still fresh and conditions are looking good for all types of winter enthusiasts. On Monday, 5.3 inches of snow was officially recorded at the National Weather Service office near the Ted Stevens Anchorage International Airport. That set a new record for Jan. 16, beating out the […]

  • News

    Anchorage Fire Department seeks new firefighters

    by Eric Ruble on Jan 17, 19:14

    The Anchorage Fire Department is hoping to hire between 18 and 25 new firefighters. The department said it wants to hire a diverse group of individuals who have a passion for helping their neighbors. “The best part about the job, I would say, would be working with a body of people who genuinely care about […]

  • Politics

    Alaskan attending Trump inauguration shares hopes for new administration

    by Eric Ruble on Jan 17, 18:43

    On Friday, President-elect Donald Trump will take on a new title as the 45th President of the United States. Julie Tisdale, the treasurer of the Alaska Republican Party, is going to be in Washington, D.C. to watch it happen. “I wanted to be a part of history,” Tisdale said. She began booking her trip the day […]

  • Lifestyle

    Cold snap could zap your car battery

    by Shannon Ballard on Jan 17, 18:16

    There’s nothing quite like the feeling of walking out into a cold parking lot to start your car and when you turn the key—nothing. Many Alaskans could face vehicle problems during the coming cold snap. AAA reports that when temperatures near zero, your car battery loses about 60 percent of its strength. That means a strong battery becomes […]

  • Indictment: Grunwald case suspect allegedly recorded sexual assault of a minor

    by KTVA CBS 11 News on Jan 17, 17:09

    A grand jury handed down an indictment on Jan. 12 that connects a suspect in the David Grunwald homicide case to the alleged sexual assault of a minor that was filmed in the Valley in July 2016. The jury indicted 22-year-old Jordan Santistevan on two charges for the July incident — second-degree sexual assault and second-degree sexual […]

  • News

    Kindness well-wishers encourage Alaska lawmakers on 1st day

    by Associated Press on Jan 17, 16:38

    A small group of well-wishers gathered in front of the state Capitol during the noon hour to encourage Alaska lawmakers on the first day of the new legislative session. The event was part of the Juneau Police Department’s campaign to promote kindness throughout the community in 2017. Dee Ojard is part of the steering committee […]