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ConocoPhillips continues to work with BP on initiatives to advance the Denali natural gas pipeline project, as well as continuing to explore and develop in lease units around the state.

Alaska activities related to development drilling in the Kuparuk River Unit area including West Sak; the Greater Prudhoe Bay Unit area; and Colville River Unit area including potential satellite fields in the National Petroleum Reserve-Alaska; and the Cook Inlet area.

ConocoPhillips drilled three new wells at the Tyonek Platform in the North Cook Inlet Unit in 2008. The completion operations for those wells are ongoing, according to ConocoPhillips spokesperson said Amy Jennings Burnett in an e-mail.

Conoco, along with its fellow working interest owners drilled two new wells at the Beluga River Unit in 2008.

Gas from the Tyonek field primarily feed the Liquefied Natural Gas facility in North Kenai, though gas can be diverted toto the local market when there is a supply disruption, or during times of high demand, such as the cold snap to start 2009.

"The LNG Plant license extension through 2011 allows the LNG Plant to remain a valuable component of the local and state economy through jobs, taxes paid and the spending associated with continued operations," Jennings Burnett said.

The LNG facility provides about $71 million per year in economic benefits to the state and local economies. The LNG facility supports 56 direct jobs and is estimated to support approximately 125 indirect jobs.

In 2007 it was estimated that the direct and indirect jobs account for an approximately $16 million in personal income. Local expenditures for operation of the LNG facility and ships are estimated at $5 million per year. The production of gas for feedstock to the LNG facility and the sale of LNG generated about $50 million in royalties and taxes for the State of Alaska and the Kenai Peninsula Borough in 2007.

"Continued operation of the LNG facility supports additional reinvestment in Cook Inlet natural gas production capacity, which means more jobs in the related exploration and production industry segment," Jennings Burnett said.

ConocoPhillips at a glance

* Headquarters: Houston, Texas

* Production in 2008: 97 million cubic feet of natural gas a day, 261,000 barrels of oil per day

* 2008 capital expenditures in Alaska: Approximately $1 billion, plus an additional $506 million in the Chuckchi Sea (final numbers have yet to be released)

* Local contact: 776-8166

* Number of employees: 56 in Cook Inlet operations; more than 1,000 statewide

* Web site: www.conocophillips.com

* Company outlook: ConocoPhillips is Alaska's largest oil and gas producer. The company has major ownership in and operates the Kuparuk River Unit, the Colville River Unit (Alpine), the Greater Mooses Tooth Unit (in the National Petroleum Preserve Alaska), the North Cook Inlet Unit, and the Beluga River Unit fields. Additionally, ConocoPhillips has major ownership in the BP-operated Prudhoe Bay Unit, owns 28 percent of the Trans-Alaska Pipeline System (TAPS), and 70 percent of the Kenai LNG Plant.