BP updates Wasilla residents on North Slope plan

WASILLA -- British Petroleum is here to stay, BP Alaska Consolidation Team senior manager Fernando Guitart assured Greater Wasilla Chamber of Commerce members this week.

"People are wondering if we are packing our bags to leave, but that is just not the case," Guitart said. "We've quit exploration and reduced the workforce, but that has been part of a conscious decision to lower our external profile and focus on internal changes."

Guitart and other members of the consolidation team presented an overview of BP's Alaska plan to chamber members at Tuesday's weekly luncheon, focusing on the four main goals of BP for Alaska.

"We have to work with Alyeska Pipeline to lower costs on the North Slope," Guitart said. "We have four double-hulled tankers being built. The first, the Alaska Frontier, is scheduled to be finished late this year and all four will be done by 2007."

The other two goals -- commercialization of North Slope viscous oil and North Slope natural gas -- are all part of BP's plan to sustain a long-term business relationship with Alaska.

"BP has more investments worldwide than capital available, and Alaska has to compete," Guitart explained.

BP is attempting to reduce Alaska operating costs by 10 percent, but even with the reduction the company is spending approximately $1 billion with Alaska businesses each year, said Guitart. Of the 1,300 BP employees remaining in Alaska, 86 percent are Alaska residents. Alaska BP employees are also working in Russia to help with the arctic oil exploration in Siberia.

"I'm sure there will be continued cross pollination," Guitart said.

Chamber members voiced interest in BP's stance on a gas pipeline, Guitart said three key risks need to be addressed in order for Alaska's natural gas to be commercialized.

"We need a fiscal contract with the state, there needs to be federal legislation put into place and a framework needs to be built in Canada," Guitart said, without laying favoritism on any particular gas pipeline route. "We support any project to support natural gas."

Contact Jen Ransom at jen.ransom@frontiersman.com.