Marathon cuts back on Cook Inlet drilling

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ANCHORAGE, AK —  Marathon Oil is cutting down on its drilling activities in Alaska’s Cook Inlet, and will be drilling only four to five wells there this year. In recent years, Marathon has drilled eight to 12 wells a year in the area.

Marathon Oil Alaska Production Manager Carri Lockhart said, “The current market situation in our industry has forced companies to further prioritize capital programs. The Alaska region for Marathon is no exception. Our projects in Alaska must compete with other projects across the globe for finite capital funding. In addition, the inability to obtain regulatory approval on key gas supply contracts signed with the utilities over recent years has created significant uncertainty on both supply and demand.”

“The 40 to 60 percent reduction in the number of producing wells that we will drill in 2009 compared to recent years is in response to these challenges. The ongoing well developments will ensure that we continue to meet current contractual obligations. Any additional drilling and capital work beyond this will be limited until we have a clear line of sight on the ability to freely negotiate and successfully secure approvals, where required, on new gas contracts.”

www.energycurrent.com

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