BP Exploration Alaska Inc., a division of BP PLC, has signed a contract with Houston-based Parker Drilling Co. to build, deliver, and commission a new ultraextended-reach drilling rig for Liberty field in the Beaufort Sea off Alaska. BPXA intends to drill wells nearly 2mi deep and with offsets as long as 8mi. The construction and commissioning contract is the second phase of the Liberty field development project. Parker anticipates that gross margins through Phase 2 of the drilling rig project will be USD 14-18 million, about 1% of the overall Liberty development cost, which BPXA anticipates to be about USD 1.5 billion. BP will own the land-based rig and will use it to drill as many as six extended-reach wells into Liberty field beginning in 2010. BPXA expects oil production to begin in 2011, ramping up to 40,000b/d, with an ultimate recovery of 100 million bbl oil.
