Despite heavy lobbying by oil opponents, U.S. Interior Department okays final review of ConocoPhillips’ Willow oil project

The U.S. Bureau of Land Management gave its approval to a supplemental

Environmental Impact Statement, or SEIS, for ConocoPhillips’ $8 billion

Willow project in the northeast National Petroleum Reserve-Alaska on

Alaska’s North Slope, ConocoPhillips announced Feb. 1. BLM’s approval

came despite heavy lobbying of the U.S. Interior Department and the Biden

administration by U.S. conservation groups.

A final investment decision on the project awaits BLM’s Record of Decision

on the SEIS, but that is expected in about 30 days. Major procurement and

contract awards will await the final decision but the company will begin

construction of gravel access roads to the Willow site this month,

ConocoPhillips' Alaska president, Erec Isaacson, said in the

announcement. Willow is expected to produce 180,000 b/d at peak with

first production in 2028.

“After nearly five years of rigorous regulatory review and environmental

analysis, the National Environmental Policy Act process is almost complete

and should be concluded without delay. ConocoPhillips looks forward to a

final record of decision and is ready to begin construction immediately after

receiving a viable ROD and full authorization from all permitting agencies,”

Isaacson said.

In the SEIS the BLM identified “Alternative E” as the preferred alternative.

Alternative E envisions three production pads and was developed by the

BLM and cooperating agencies as well as ConocoPhillips.

“Under Alternative E, the BLM could authorize three drill sites initially, and

potentially one additional drill site in the future. This is a reduction from the five drill sites initially proposed by ConocoPhillips and a reduction of project footprint in the Teshekpuk Lake Special Area by more than 40 percent. The three core drill sites in Alternative E (BT1, BT2, and BT3) reflect an integrated design concept and provide a viable path forward for development of our leasehold,” Isaacson said.

There was a worry right up to the end that BLM and U.S. Interior officials

might buckle under the pressure from conservation groups and approve a

more limited development plan of two pads, rather than three, for Willow.

ConocoPhillips had warned that a two-pad approval would be a deal-

breaker because it would not result in enough production to make the

project viable.

The company now says it intends to initiate gravel road construction

quickly, once permits are in place, and then proceed to a final investment

decision for the entire project, which will require fabrication of large

production modules.

“Planning is currently in progress and mobilization could start as soon as

February,” Isaacson said in his statement. “Additional North Slope

construction activities for Willow will occur throughout the summer and fall.

Concurrently, material fabrication will begin in U.S. facilities and the pace of

contracting and procurement will increase,” he said.

Not surprisingly, conservation groups criticized the action.

“It’s outrageous that (President Joe) Biden seems ready to greenlight the

massively destructive Willow project, prioritizing oil industry profits over the

future of polar bears and other Arctic wildlife,” said Kristen Monsell, senior

attorney at the California-based Center for Biological Diversity, in a

statement.

“Letting ConocoPhillips move forward with this dangerous plan breaks

Biden’s promise to stop oil drilling on public lands. More fossil fuel

extraction will speed up climate change, and the already-melting Arctic

permafrost literally can’t support drilling operations in this area. This

nonsensical project is a huge step backwards. We urge Biden to reject it in

the final decision. And we’ll keep fighting it until it’s scrapped.”