Santos says ConocoPhillips road dispute not slowing Alaska oil project

div classBodysc17zpet90 cdBBJodivpMELBOURNE Reuters – Santos Ltd played down on Friday an Alaska road access dispute with ConocoPhillips, saying their feud was not slowing work on the 3 billion Pikka oil project or the Australian gas producers efforts to sell its stake in it.p

pSantos rejected a proposal by ConocoPhillips to charge 95 million for longterm access to roads on the U.S. oil and gas producers Kuparuk River Unit KRU oil fields, next to the Pikka project run by Oil Search, which Santos acquired last year.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pInstead, Santos applied to the Alaska Department of Natural Resources for a land use permit, which it received on March 29, pending an agreement between the two companies on the longterm access.p

pConocoPhillips challenged that decision on April 5 and the departments commissioner, Corri Feige, has given Oil Search until June 7 to respond before she decides on the appeal.p

p“There has been no impact to access and the land permit granted to Santos by the Division of Oil and Gas on 29 March remains current,” a Santos spokesperson said in an email.p

pWhile the company expects the Pikka project to be ready for a final investment decision by midyear, it is also trying to sell its 51 stake in the project, as it looks to raise up to 3 billion from asset sales this year.p

p“There has been no impact on the selldown process,” the spokesperson said.p

p

pp Reporting by Sonali Paul Editing by Rashmi Aichp

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