BP/Arco spending: Arco and BP, the state's two largest oil operators, are boosting 1993 capital investments to more than $1 billion.

• Author: Tyson, Ray
• Position: BP Exploration Alaska Inc.; Arco Alaska Inc.

The state's two largest oil producers, BP Exploration and Arco Alaska, plan to spend an estimated $1.2 billion on projects in 1993, representing about a 10 percent increase in capital investment over last year. The lion's share is earmarked for the North Slope, the nerve center of Alaska's oil industry. And millions more will be paid out in 1993 by Exxon, Alaska's third largest producer, and other owner companies that share in the cost of developing and maintaining various oil fields.

BP, who operates the western half of Prudhoe Bay and the offshore Endicott field, will spend from $650 million to $700 million in 1993; Arco, who operates the eastern half of Prudhoe and the Lisburne and Kuparuk fields, will kick in from $500 million to $550 million. While the largest share of expenditures will go toward field work, a considerable amount of effort will be invested in searching for oil to replenish dwindling reserves.

Arco's Five-Year Plan. The state's most aggressive explorer, Arco reportedly will spend about $186 million on exploration in 1993 as part of a five-year, $600 million program.

Arco is operating six rigs on the North Slope this winter to drill seven exploration wells. This includes three wells in the Colville Delta to further evaluate two oil discoveries announced in late December. Additionally, two wells will be drilled in the foothills of the Brooks Range south of the Kuparuk field, one at the recently formed Jones Island Exploration Unit in the Beaufort Sea, and one on the north fringe of the Prudhoe Bay field.

Another major Arco project is the Point McIntyre field, scheduled to come on line in third quarter 1993 with initial daily production of 40,000 barrels, ramping up to about 90,000 barrels within six months of startup.

While capital spending will increase in 1993, "There have been significant operational cuts," notes Susan Reed, Arco's manager of Media Communications. In the wake of increasing costs and decreasing production, both Arco and BP have reduced staff and consolidated some services.

Arco also plans to drill one or two wells next summer to delineate its Kuvlum discovery in the eastern...