• 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

  • Weather

    Evening News weather, Nov. 26

    by KTVA Weather on Nov 26, 19:36

    Kenai Peninsula and Prince William Sound Skies will be partly sunny for Thanksgiving, but expect to wake up to early morning fog. Southeast Expect clouds to move out as clearing happens from the north to the south. Interior and North Slope In the Interior, skies will be mostly clear with temperatures dramatically cooling off. North […]

  • News

    Farmer’s market in Anchorage offers Thanksgiving alternatives to turkey

    by Lauren Maxwell on Nov 26, 19:29

    Alaskans who want to eat local this holiday season will find plenty to fill their holiday tables. That’s especially true if they are open to some alternatives for the main course. At the Center Market, a year-round farmer’s market inside the Sears Mall, shoppers could be found on the day before Thanksgiving picking up produce […]

  • News

    Anchorage students learn about the godmother of Thanksgiving

    by Alexis Fernandez on Nov 26, 19:23

    Food and family are two of the symbols most associated with Thanksgiving. On the eve of the national holiday, one group of local sixth-graders decided to dig a little deeper. Word-by-word, sixth-grade students at College Gate Elementary School relived history and learned about the past. They put together a presentation about well-known author Sarah Hale, known as […]

  • News

    Injured musher, dogs recovering after being struck by car in Willow

    by Shannon Ballard on Nov 26, 19:14

    Willow, Alaska is musher country, a place where residents joke that there are more dogs than people. Dog sled trails weave through the trees right up against the Parks Highway. Six-time Iditarod finisher Karin Hendrickson is familiar with the curve near mile marker 91. It’s where she and her sled dog team were stuck by […]

  • News

    Anchorage Animal Control: dogs seized from Girdwood regaining health

    by KTVA CBS 11 News on Nov 26, 18:10

    A dozen emaciated dogs taken from a Girdwood kennel are getting healthier, says Anchorage Animal Care and Control. Two weeks after Animal Control seized the dogs from Girdwood, the center released photos of two of the huskies. “Per Dr. Myra Wilson, Anchorage Animal Care and Control veterinarian and director, the 12 huskies in AACCC’s custody […]

  • Crime

    13-year-old sets fire in Juneau’s Merchants Wharf building

    by KTVA CBS 11 News on Nov 26, 17:01

    A 13-year-old in Juneau has been found responsible for starting a fire at the Merchants Wharf building Monday night. At around 9:40 p.m., Capital City Fire and Rescue and two Juneau Police Department officers responded to a fire at the building, which has been victim to recurring arson activity. In a release, JPD says five […]

  • Crime

    Alaskan actor found guilty of attempted murder of 2 brothers

    by KTVA CBS 11 News on Nov 26, 15:56

    A jury has found a 47-year-old Kiana man, known for his role in the film “On the Ice,” guilty of shooting two brothers and stealing their boat in September 2012, authorities say. Tuesday, Teddy K. Smith was found guilty of two counts of first-degree attempted murder, two counts of first-degree robbery, two counts of second-degree theft and […]

  • Crime

    Humane Society offers reward in Anchorage animal cruelty case

    by KTVA CBS 11 News on Nov 26, 13:39

    The Humane Society of the United States is offering a reward up to $5,000 for information in connection with a dog’s death in which the pit bull was found hanging from a tree with his throat slashed. The dog, named Snoop, was discovered in the woods near East 20th Avenue and Rosemary Street Oct. 10 after […]