• 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

  • Sports

    Low snow totals causes havoc again with Iditarod start

    by Associated Press on Feb 10, 17:09

    Another low snow year in Alaska is playing havoc with the world’s most famous sled dog race, at least for the start. The Iditarod Trail Sled Dog Race always begins with a ceremonial, fan-friendly start through the streets and trails of Anchorage. But this year, the race’s chief executive officer says he’s worried there won’t […]

  • Crime

    Anchorage police arrest man in connection with 3 recent robberies

    by KTVA CBS 11 News on Feb 10, 16:53

    A 24-year-old man originally arrested on January 29 for attempting to rob a woman in a Sam’s Club parking lot was charged in connection with two additional robberies, according to a release from the Anchorage Police Department. Original Arrest On Jan. 29, Gaythel Graves, allegedly held a woman at gunpoint in an Anchorage Sam’s Club parking […]

  • Politics

    Justice addresses lawmakers with cost-saving reforms for Alaska court system

    by Liz Raines on Feb 10, 15:33

    Chief Justice of the Alaska Supreme Court, Craig Stowers, spoke to the Alaska House and Senate in the annual State of the Judiciary address Wednesday, acknowledging the state’s unprecedented budget shortfall and offering savings within the court system. “I think it’s important that the court system be a good soldier and a good team player […]

  • DayBreak

    Workforce Wednesday: Careers in Logistics

    by Daybreak Staff on Feb 10, 14:17

    In Alaska, logistics is more than just working for FedEx or UPS. It means everything from food to fuel, cars and clothes coming through the Port of Anchorage. More than 85 percent of all Alaskans receive goods through the port. In short, logistics is the art and science of time, space and location. Jana Lage, […]

  • DayBreak

    UAA Planetarium’s Stars of the Alaskan Sky: Valentine’s Day edition

    by Daybreak Staff on Feb 10, 14:06

    It’s star gazing without the chill factor of Alaska in February and could be the perfect date idea for Valentine’s Day weekend. This Friday, Stars of the Alaskan Sky: Valentine’s Day edition will kick off at the planetarium on the University of Alaska Anchorage campus. Omega Smith, UAA Planetarium Manager, joined Daybreak on Wednesday to talk about […]

  • News

    Police-involved shooting ends in death of Barrow fire chief

    by KTVA CBS 11 News on Feb 10, 12:35

    A North Slope Borough police officer was involved in a shooting early Wednesday morning resulting in the death of a 36-year-old Barrow man. Just after 3:30 a.m., the officer responded to a call for assistance on the 7400 block of North Star Street in Barrow. While responding, a shooting occurred that resulted in the death […]

  • News

    Wrangell doctor sentenced in child pornography case

    by Associated Press on Feb 10, 10:27

    A Wrangell doctor convicted of receiving and distributing child pornography has been sentenced to 20 years in prison and a lifetime of supervised release. The U.S. Department of Justice says 54-year-old Greg Alan Salard was sentenced Tuesday and fined $25,000 by U.S. District Judge Timothy Burgess. Salard after a six-day trial in Juneau was convicted […]

  • News

    UPDATE: Mail carrier alerts sleeping homeowner to fire, calls 911

    by KTVA CBS 11 News on Feb 10, 10:14

    Updated at 12:05 p.m. on Wednesday, Feb. 10 An Anchorage mail carrier is to thank for calling 911 and alerting a homeowner to a fire Wednesday morning, potentially saving his life. Kermit Arroyo told KTVA that he heard three explosions and saw flames shooting from the residence. He called 911 and ran to the house […]