ConocoPhillips Canada has been one of the principal players in the Mackenzie Delta and Beaufort Sea exploration trends since the late 1960s, and is the operator of the Parsons Lake and Amauligak discoveries. ConocoPhillips holds 44 significant discovery licenses and two exploration licenses and is the operator of 11 of these licenses in the area. At year-end 2007, total leasehold for the region was 918,795 gross acres and 475,594 net acres.
Parsons Lake
Operator: ConocoPhillips (75.0%)
Co-venturer: ExxonMobil (25.0%)
Discovered in 1972, the Parsons Lake natural gas field is located in the Mackenzie Delta, 45 miles north of Inuvik and about 35 miles southwest of Tuktoyaktuk. Parsons Lake is one of the three anchor fields that would be produced into the proposed Mackenzie Gas Project discussed below.
Umiak
Operator: MGM* (60%) *effective July 2007
Co-venturer: ConocoPhillips (40%)
ConocoPhillips participated, with a 25 percent interest, in the Umiak N-16 exploration well, which was drilled in the Mackenzie Delta in 2004. During 2005, this well was tested and an appraisal well was completed and tested. Both wells are held as suspended gas wells. In October 2006, ConocoPhillips acquired an additional 15 percent interest in the Umiak discovery. Plans to commercialize this discovery will be linked to the progress of the Mackenzie Gas Project and its infrastructure development.
Amauligak
Operator: ConocoPhillips (50.9%)
Co-venturers: Chevron (32.3%), Imperial (7.3%), Others (9.5%)
Amauligak is the largest oil and gas field in the region. It lies approximately 31 miles offshore in shallow water. Development planning will be linked to the progress of the Mackenzie Gas Project.
Mackenzie Gas Project
ConocoPhillips is working with three other energy companies on a project to transport onshore natural gas reserves from the Mackenzie Delta in northern Canada to established natural gas markets in North America. The start-up capacity for the Mackenzie Valley Pipeline is planned to be 1.0 BCFD of natural gas, which will be expandable with additional compression to 1.8 BCFD. A separate pipeline also is planned to transport natural gas liquids from the Mackenzie Delta to existing pipeline infrastructure for delivery to the North American market.
The Parsons Lake gas field is one of three primary fields in the Mackenzie Delta that would anchor the pipeline development. ConocoPhillips holds an average 18 percent interest in the proposed natural gas pipeline and gathering system. Formal regulatory applications for the project were submitted in 2004. The National Energy Board and Joint Review Panel hearings started in January 2006 and continue to be held at multiple locations in the Canadian North. The Joint Review Panel has extended its hearings through November 2007.