The new tax system has been prepared to abolish the structure of raised tax rates, which are contributing to higher oil prices.
The previous tax system of Alaska exceeded 50% tax rate, when oil prices were high, making Alaska less attractive to energy companies.
BP plans to increase capital spending at Prudhoe Bay in Alaska by about 30%, which includes addition of two new onshore rigs and bring the company’s total fleet in the area to 9 working rigs.
BP also secured support from the other Working Interest (WI) owners such as Exxon, ConocoPhillips and Chevron to evaluate about $3bn worth of new development projects in the Greater Prudhoe Bay area.
Exxon and ConocoPhillips hold 36% interest each in the field, while Chevron has 1% interest.
The new development opportunities being evaluated include expansion and debottlenecking of existing Prudhoe Bay facilities, constructing a new drilling pad and expansion of existing pads along with drilling of about 110 new wells.
