Phillips Alaska Inc. has begun production at Alpine oil field on Alaska's North Slope.
Phillips said Thursday Alpine will reach peak production of 80,000 b/d by yearend. It estimates the field's recoverable reserves at 429 million bbl. The field will cost more than $1 billion to develop.
The field is in the Colville River area, 8 miles from the village of Nuiqsut. It is the westernmost producing oil field on the North Slope.
At the first Alpine drill site, 30 wells�16 production and 14 injection�have been completed. Another drill site is planned, as are more than 112 horizontal wells. Phillips said development of the first site includes the use of miscible injectant generated from the existing gas in the field, creating an enhanced oil recovery project.
Phillips said that environmental concerns have encouraged it to take special precautions at Alpine, such as not building a permanent road to the field but using ice roads in the winter.
Phillips Alaska holds 78% of the field, and Anadarko holds 22%.
