BP announced June 3 it plans to invest $1 billion and add two drilling rigs to the company's Alaska North Slope fields over the next five years. The company said it made these investment plans due to a change in the state's oil tax policy.
BP said it will increase drilling and well-work activity, upgrade existing facilities and add as many as 200 new jobs. It's also gained support from other working interest owners in Prudhoe Bay where BP will determine whether or not to add $3 billion in new development projects.
"With this new tax law, the Alaska legislature and Governor Parnell have taken an important step toward improving Alaska's long-term economic future," said BP Alaska Region President Janet Weiss. "Our announcement today should make abundantly clear that BP is committed to being a part of that future and to continuing to extend the life of North America's largest oil field."
The oil giant also hopes to increase well work as soon as the fourth quarter of this year to improve the performance of its existing wells at both Prudhoe Bay and Milne Point fields.