2016 Statistics. About BP in Alaska. Employees 1,700 people. Operating budget $1.1 billion. Capital investment $600 million

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1 bp in Alaska

2 About BP in Alaska BP has spent more than half a century exploring and developing Alaska s oil and gas resources, while playing an important role in driving economic growth and supporting local communities throughout the state. The company began working in Alaska in 199, started drilling at the massive Prudhoe Bay oil field in 1968, and helped build the Trans-Alaska Pipeline System in the mid-197s. Since Prudhoe Bay began production in 1977, it has generated more than 12 billion barrels of oil far exceeding initial projections thanks in part to enhanced oil recovery technologies that BP pioneered. Four decades after starting up, it remains one of North America s largest oil fields. BP holds a significant interest in Alaska s North Slope. The company operates the entire Greater Prudhoe Bay area, which consists of the Prudhoe Bay field and a number of smaller fields. This area produces around percent of Alaska s oil and gas, and in 216 it averaged 28,7 barrels of oil equivalent each day. BP owns interests in seven other North Slope oil fields, including Alaska s newest field Point Thomson. BP has also spent the several years working with industry partners and the State of Alaska to advance the Alaska liquefied natural gas (LNG) project, which, if sanctioned, would move North Slope gas to global markets. All 21 statistical data is based on the full calendar year, unless otherwise noted. For more information go to bp.com 216 Statistics Employees 1,7 people Operating budget $1.1 billion Capital investment $6 million Prudhoe Bay Gross Production (operated) 28,7 bopd BP Net Production (operated & non operated) 17,9 bopd Taxes and royalties paid (government take) $464 million Community investment $3. million Prudhoe Bay well site 2 3

3 BP in the community In addition to its oil and gas activities in Alaska, BP is heavily invested in communities across the state through donations to non-profit and education groups, scholarship programs, and volunteer hours from its employees. In 21, BP Alaska donated more than $4. million to hundreds of organizations throughout Alaska. Our employees support more than 8 community and education organizations and 23 youth teams. BP, partnering with the University of Alaska system, has been instrumental in creating industry-specific programs such as the Asset Integrity and Corrosion Lab, the Alaska Native Science and Engineering program, summer engineering program and Process Technology programs. The BP Teacher of Excellence program receives more than 1, Alaska teacher nominations annually and has recognized nearly 7 teachers over the program s 2-year history. STEM education growing an Alaska workforce BP supports community and science, technology, engineering and math (STEM) education programs throughout Alaska. Training Alaskans and supporting a quality education system in the state remain key priorities for BP. Of our 1,7 employees in Alaska, 78 percent are Alaskans and we encourage our contractors to hire and train Alaskans as well. BP Energy Center A true gift to Anchorage and communities across Alaska, the BP Energy Center provides meeting space free of charge to more than community and education groups every year. The center underscores BP s commitment to making Alaska a great place to live, work and raise a family. The training, meeting, and conference facility has seen more than 1, visitors since opening in 22. During normal business hours, the facility is available at no cost via a reservation system to its users. The Energy Center remains a symbol of BP s ongoing commitment to community and is the centerpiece of BP s annual multimillion dollar contribution to Alaska s not-for-profits. In order to grow an Alaska workforce, BP has invested millions of dollars toward quality education in the state. Since 21, BP has contributed more than $3 million to the University of Alaska system. In addition to providing financial support, BP partners with the university on research projects, provides mentors and internships for students, and hires Alaska graduates. 4

4 Alaska LNG BP also has spent the past few years working with industry partners and the state government to advance the Alaska liquefied natural gas (LNG) project, which, if sanctioned, would move North Slope gas to global markets. Estimates suggest that this project could create up to 1, temporary construction jobs and around 1, permanent jobs. Point Thomson Point Thomson The Point Thomson initial production system project start-up in April 216 with an initial first production rate of approximately, bpd of condensate and 1 million standard cubic feet per day of recycled gas through two wells. The operator is ExxonMobil with a working interest of 62%, while BP holds a 32% working interest. Located about 6 miles east of Prudhoe Bay along the shoreline of the Beaufort Sea, it is estimated to hold about 2 percent of known North Slope natural gas. The field is considered key to a successful Alaska LNG project. The development of Point Thomson included a multibillion dollar investment to drill wells, and construct processing facilities, gravel pads, pipelines, and supporting infrastructure including an airstrip, base camp, and sea barge docks and piers. Condensate is a light oil that will be recovered by taking the high pressure gas that is produced and processing it through the planned initial production system facilities. The remaining lean gas will be re-injected back into the reservoir. The long-range development plan for Point Thomson is to drill additional wells and construct additional pipelines and facilities to produce and market gas as part of an Alaska LNG project. However, the current low energy price environment and the increasing number of LNG export projects create a challenge for the Alaska LNG project. BP remains committed to working with all project participants, including the State of Alaska, to try and make the Alaska LNG project successful. BP has a shared goal with Alaska to develop an economically viable Alaska LNG project, says BP Alaska President Janet Weiss. There has been a tremendous change in the economic environment, but BP remains committed to trying to commercialize Alaska s North Slope gas resources. The project concept includes a gas treatment plant located on the North Slope, an 8-mile, 42-inch pipeline with at least five off-take points for in-state gas delivery, and a liquefaction plant and terminal at the Nikiski area on the Kenai Peninsula. From there the liquefied natural gas would be loaded on specialized tankers for delivery to markets in Asia. A decision point for progressing to the FEED phase of the project will be considered at the completion of the pre- FEED phase. Pt. Thomson (ExxonMobil) Badami (Miller) Illustration shows what the LNG plant at Nikiski would look like. 6 7

5 Trans Alaska Pipeline System The 8-mile-long Trans Alaska Pipeline System (TAPS) is one of the largest pipeline systems in the world. It stretches from Alaska s North Slope to Valdez, crossing three mountain ranges, 34 major rivers and streams, and nearly smaller water crossings. TAPS ownership: Operator: Alyeska Pipeline Service Company Owners: BP Pipelines (Alaska) Inc % ConocoPhillips Transportation Alaska, Inc. 29.2% ExxonMobil Pipeline Company 2.99% Unocal Pipeline Company 1.3% Other pipelines In addition to TAPS, BP owns: 38% Kuparuk Pipeline % Milne Point Pipeline 32% Point Thomson Export Pipeline Trans Alaska Pipeline TAPS Facts TAPS average daily throughput (21) 8,446 average bbls/day TAPS total throughput (21) 18,82,71 bbl TAPS cumulative throughput since startup more than 17.2 billion bbl Pipeline diameter - 48 inches Construction cost - $8 billion in 1977 Valdez Marine Terminal Storage capacity million barrels Construction cost - $1.4 billion in 1977 Valdez Marine Terminal 8 9

6 Environment BP s presence on the North Slope for nearly half a century has not only helped advance technology in oil and gas development and engineering, but also has vastly increased understanding of Arctic ecosystems from weather and climate to the flora and fauna that inhabit this northern region both on land and in the sea. Alaska Clean Seas: Alaska Clean Seas (ACS), the North Slope-based oil spill response cooperative that serves BP Alaska and other North Slope oil producers, reached a milestone of 2 million hours without a Lost Time Accident. ACS is recognized as a world leader in Arctic land and marine oil spill response. It maintains and operates nearly $1 million of oil spill response equipment - one of the largest collections of oil spill response equipment in the Pacific Northwest. ACS has full-time employees and employs personnel from local villages and subcontractors to respond to seasonal workloads and responses. ACS is also responsible for training North Slope Spill Response Teams that are immediately available to support response activities. There are 17 fully-qualified and highly-trained personnel ready to assist on any given day. For more than 3 years, as a not-for-profit cooperative, ACS has provided world-class Arctic expertise with an exemplary commitment to safety and delivering unmatched support to the co-op members on Alaska s North Slope. Before companies like BP began searching for oil on Alaska s North Slope in the 196s, most ecological studies in the far north were funded by government programs in the name of basic science. Little was known about what is sometimes called applied ecology, or the study of what happens to biological communities altered by human activities. The discovery of the giant Prudhoe Bay oil field in 1968 and its subsequent development sparked interest in Arctic applied ecology. Scientists near and far wanted to know how development would impact the region s plants and animals. At the same time, they wanted to know how those impacts could be managed. Although government programs have remained engaged in the Arctic, BP and other oil and gas producers have actively pursued applied ecological research on the North Slope. BP has actively supported scientists working through university, agency, consulting and nonprofit organizations. Together, BP s long-term studies, along with studies by others, provide an annual snapshot of ecosystem changes in the oilfields. Some of the changes, such as nest initiation dates of shorebirds and soil temperatures, show trends over time. Other changes reflect the ever-changing nature of nature, with wide ranges from one year to the next driven by everything from weather, to interactions among species, to disease. Each year, BP summarizes results from a number of long-term ecological studies in a report intended for a general audience. The report includes chapters on weather and climate, plant communities, permafrost, tundra nesting birds, brant and snow geese, swans, ravens, fox dens, polar bears, coastal fish, underwater sounds, whale calls, seals, and wildlife events. 1 11

7 Greater Prudhoe Bay Prudhoe Bay oil production passes 12.3 billion barrels Since Prudhoe Bay began production in 1977, it has generated 12.3 billion barrels of oil, far exceeding initial projections, in part to enhanced oil recovery technologies that BP pioneered. Four decades after starting up, it remains one of North America s largest oil fields. BP operates the Greater Prudhoe Bay area, which consists of the Prudhoe Bay field and a number of smaller fields. This area produces around percent of Alaska s oil and gas, and in 21 it averaged 281,8 barrels of oil equivalent each day. BP s net production from the area is 66,1 barrels of oil equivalent each day. Safety and integrity programs remain our primary focus. Integrity programs will focus on fire and gas systems, safety systems, pipeline renewal and facility siting. As a number one priority, safety will be strengthened and ensured through increased contractor management/ engagement, as well as a re-invigorated control of work program. Milne Point Enhanced oil recovery strategies The challenge for the entire industry is to respond to a low oil price environment in a way that improves efficiency and accelerate innovation. BP s goal is to minimize oil production decline Techniques that have enhanced oil recovery and boosted overall oil recovery include: large-scale gas cycling, water flooding around the periphery of the field, miscible gas injection and water-alternating gas injection. Improved reservoir analysis and delineation; advanced drilling techniques such as horizontal and multi-lateral, along with advanced well completion methods have also made significant contributions. Prudhoe Bay seismic BP completed a major North Prudhoe Bay seismic survey in 21. The $78 million, 3D seismic survey covered 19 square miles and gathered geophysical data from both the onshore and offshore areas within Prudhoe Bay. The survey will support land-based oilfield development and drilling. Prudhoe Bay satellites Satellite fields are smaller accumulations of oil that can often be developed using existing infrastructure. The 21 average daily production from Prudhoe Bay satellites is about 2,2 barrels of oil. BP s net share of that production is about,8 barrels of oil. There are five satellite fields currently producing and the liquids are processed through the field s main facilities. Aurora, Borealis, and Midnight Sun satellite fields are produced from similar formations, at 6, to 8, feet below sea level. Orion and Polaris fields both produce the difficult viscous oil from the Schrader Bluff formation, at depths of 4, to, feet below sea level. Palm Kuparuk Tabasco Schrader Bluff Orion Borealis Aurora Polaris Northstar Midnight Sun Point McIntyre Niakuk Eider Lisburne 1 MILES Endicott Liberty Tarn Meltwater West Sak Prudhoe Bay Badami 12 13

8 Oil Fields Prudhoe Bay Midnight Sun Aurora Owners BP (Operator) ~26% ConocoPhillips ~36% ExxonMobil ~36% Chevron ~1% BP (Operator) ~26% ConocoPhillips ~36% ExxonMobil ~36% Chevron ~1% BP (Operator) ~26% ConocoPhillips ~36% ExxonMobil ~36% Chevron ~1% Field Data Participating Field Area 217,827 acres (includes satellite fields) 3,113 acres 1,48 acres Original Oil in Place Original Gas in Place 24 billion bbls 4 tcf 6 million bbls 23 million bbls Cumulative Oil Production Production (12/31/1) (barrels of oil) 13.1 billion 2.3 million 4.2 million Current Rates (12/31/1) Oil (thousands barrels/day) Gas (MMcf/day) Water (thousands bbl/day) 23 6, Number of Wells Oil Producers Gas Injection Water Injection WAG Injection* Oil Fields Orion Polaris Borealis Owners BP (Operator) ~26% ConocoPhillips ~36% ExxonMobil ~36% Chevron ~1% BP (Operator) ~26% ConocoPhillips ~36% ExxonMobil ~36% Chevron ~1% BP (Operator) ~26% ConocoPhillips ~36% ExxonMobil ~36% Chevron ~1% Field Data Participating Field Area Original Oil in Place 19,842 acres 3.2 billion bbls 11,684 acres 4 million bbls 16,84 acres 3 million bbls Cumulative Oil Production Production (12/31/1) (millions of barrels of oil) Current Rates (12/31/1) Oil (thousands barrels/day) Gas (MMcf/day) Water (thousands bbl/day) Number of Wells Oil Producers Gas Injection Water Injection WAG Injection* 7 1 * Water Alternating Gas Injector

9 Point McIntyre Located seven miles north of Prudhoe Bay, the Point McIntyre field was discovered in 1988 and production started in Point McIntyre contained an estimated 88 million barrels of oil in place. The field s production peaked in 1997 at 163, barrels per day. In 21, production averaged about 16,2 barrels of oil per day. BP produces the field from two gravel drill site pads. Production rates are maintained through drilling of new wells, enhanced oil recovery methods and facilities upgrade. Niakuk The Niakuk field is located offshore, but produced through onshore facilities. The field contained about 4 million barrels of oil in place. Production in 21 averaged about 1,3 barrels of oil per day from the lower Cretaceous Kuparuk River formation, a structurally and stratigraphically complex formation. Lisburne The Lisburne field is a complex, fractured carbonate reservoir that lies underneath and adjacent to the main Ivishak reservoir at Prudhoe Bay. However, fluid may flow a hundred times more easily in the Ivishak reservoir than it does in the Lisburne formation. The field was discovered in 1968 along with the Prudhoe Bay field and came on-stream in late The field contained an estimated 2.4 billion barrels of oil in place. Production averaged about 4,9 barrels of oil per day in 21. The 21 Lisburne well development program utilized a new well design, completion design and stimulation technology in order to maximize reservoir exposure and increase ultimate recovery. These were the first new Lisburne production wells drilled in nine years. The combined initial rate from three new wells averages 3, barrels of oil per day (bopd), which exceeds the initial expectations. Lisburne remains a challenge to develop because it is the highest complexity index of any reservoir in BP s worldwide portfolio. Lisburne field 1 MILES Milne Point Northstar Tabasco Point McIntyre Alpine Palm Kuparuk Schrader Bluff Borealis Aurora Polaris Midnight Sun Niakuk Eider Endicott Liberty Tarn West Sak Prudhoe Bay Lisburne 16 17

10 Flow Station 1 Oil Fields Point McIntyre Niakuk Lisburne Owners BP (Operator) ~26% BP (Operator) ~26% ConocoPhillips ~36% ConocoPhillips ~36% ExxonMobil ~36% ExxonMobil ~36% Chevron ~1% Chevron ~1% BP (Operator) ~26% ConocoPhillips ~36% ExxonMobil ~36% Chevron ~1% Field Data Participating Field Area Original Oil in Place Original Gas in Place 1,828 acres 88 million bbls 832 bcf 7,284 acres 4 million bbls 349 bcf 79,999 acres 2. billion bbls 2,3 bcf Cumulative Oil Production Production (12/31/1) (millions of barrels of oil) 473 million 96.4 million 184 million Current Rates (12/31/1) Oil (thousands barrels/day) Gas (MMcf/day) Water (thousands bbl/day) Number of Wells Oil Producers Gas Injection Water Injection WAG Injection* * Water Alternating Gas Injector

11 Milne Point Unit Located about 2 miles west of Prudhoe Bay, Milne Point has become an innovator in the application of new reservoir technology to enhance oil recovery. In 21 the Milne Point Unit average production was 18,7 barrels of oil per day. BP s net production is approximately 8, barrels of oil per day. Cumulative oil production from Milne Point is 328 million barrels of oil. Oil Fields Field Data Participating Field Area Original Oil in Place (gross) Original Gas in Place Milne Point - Kuparuk Schrader Bluff Owners Hilcorp (Operator) % BP % 66,61 acres 8.9 billion bbls 613 bcf Milne Point was discovered in 1969 by Conoco and began production in 198. Today, the field is operated by Hilcorp and jointly owned by Hilcorp and BP. Milne produces oil from three main reservoirs. The Kuparuk and the Sag River reservoirs are lighter oil horizons and the Schrader Bluff produces viscous oil, with the consistency of maple syrup. The viscous oil is colder and thicker than other North Slope oil. All production fluids are processed through the Milne Point Unit production facilities. Hilcorp also operates the Liberty prospect, owned 4% by BP. BOEM is preparing the Draft Environmental Impact Statement on the Liberty development and production plan. Cumulative Oil Production Production (12/31/1) (millions of barrels of oil) Current Rates (12/31/1) Oil (thousands bbl/day) Gas (MMcf/day) Water (thousands bbl/day) Number of Wells Oil Producers Gas Injection Water Injection WAG Injection* * Water Alternating Gas Injector Schrader Bluff Milne Point Tabasco Palm 1 MILES Kuparuk Tarn West Sak Aurora Polaris Borealis Prudhoe Bay Midnight Sun Niakuk Eider Lisburne Sag Delta North Endicott Liberty 2 21

12 Greater Kuparuk Area Discovered in 1969, Kuparuk began production in December 1981 and achieved a peak rate of 324, barrels per day in The producing reservoir is composed of Cretaceous-age Kuparuk sands at depths of, to 6, feet. The Greater Kuparuk Area produced 14,2 barrels of oil per day in 21. BP s net production is 33,8 barrels of oil per day. Cumulative production from the Greater Kuparuk Area is 2.6 billion barrels of oil. BP holds approximately 39 percent ownership in the Greater Kuparuk Area, which includes the satellite fields of Tarn, Tabasco, Meltwater and West Sak. ConocoPhillips is the field operator. The production from these fields is processed through the Kuparuk production facilities. Processed oil from Kuparuk is piped 28 miles to Pump Station 1, the beginning of the Trans Alaska Pipeline System. Kuparuk satellite fields The Kuparuk satellites include the fields of Tarn, Tabasco, Meltwater, and the viscous oil West Sak field. In 21, the combined average daily production from the Kuparuk satellite fields averaged 2,1 barrels of oil per day. The Tarn satellite field located south of the Kuparuk field produced about 9,3 barrels of oil per day in 21. Like the Tarn field, Tabasco began production in The Tabasco field is a small development that produces relatively viscous oil, and is situated to the west of the Kuparuk field. Located 1 miles south of Tarn, Meltwater was discovered in 2 and produces from a single drill site. West Sak Discovered in 1971, West Sak is a shallow, viscous oil reserve situated above the Kuparuk reservoir. The West Sak core area contains 1. billion barrels of oil but the oil is cold, thick and difficult to produce. Long-term production from West Sak began in 24. In 21, West Sak oil production averaged 12,6 barrels of oil per day. The cumulative production from West Sak is about 79 million barrels of oil. Schrader Bluff Tabasco Milne Point Northstar Alpine Palm Kuparuk Borealis Aurora Polaris Midnight Sun Lisburne Niakuk Eider Sag Delta North Endicott Liberty West Sak Meltwater Tarn 1 MILES Prudhoe Bay 22 23

13 Oil Fields Kuparuk West Sak Tabasco Owners ConocoPhilips (OP).2% BP 39.2% Chevron % ExxonMobil.6% ConocoPhilips (OP) 2.2% BP 37% Chevron % ExxonMobil.8% ConocoPhilips (OP).4% BP 39.3% Chevron % ExxonMobil.4% Field Data Participating Field Area Original Oil in Place Original Gas in Place 182, acres.9 billion bbls 2.8 tcf 17,9 acres 7.7 billion bbls 3, acres 16 million bbls Cumulative Oil Production Production (12/31/1) (barrels of oil) 2.1 billion 8 million 18.6 million Current Rates (12/31/1) Oil (thousands barrels/day) Gas (MMcf/day) Water (thousands bbl/day) Number of Wells Oil Producers Gas Injection Water Injection WAG Injection* Oil Fields Tarn Meltwater Owners ConocoPhilips (OP).4% BP 39.3% Chevron % ExxonMobil.4% ConocoPhilips (OP).4% BP 39.3% Chevron % ExxonMobil.2% Field Data Participating Field Area Original Oil in Place 1,3 acres 23 million bbls 6,263 acres 1 million bbls Cumulative Oil Production Production (12/31/1) (millions of barrels of oil) 11.4 million 17.6 million Current Rates (12/31/1) Oil (thousands barrels/day) Gas (MMcf/day) Water (thousands bbl/day) Number of Wells Oil Producers Gas Injection Water Injection WAG Injection* * Water Alternating Gas Injector

14 Summary BP North Slope Oil Fields Original Oil in Place Original Gas in Place ~ 6 billion bbls 62 tcf Cumulative Production BP Net Oil (12/31/1) (billions of barrels of oil) * Current Rates (12/31/1) BP Net Oil (thousands bbl/day) 12 4 *TAPS Throughput since 1977 North Slope facts The North Slope is a flat, treeless wetland, which extends 88, square miles, from the foothills of the Brooks Mountain Range to the Arctic Ocean and west from the Canadian border to the Chukchi Sea. BP s footprint on the North Slope encompasses about 312 square miles. Location Prudhoe Bay is located about 6 air miles north of Anchorage and about 1,2 miles south of the North Pole. It is about 2 miles north of the Arctic Circle. This region includes the Arctic National Wildlife Refuge (ANWR), the Central Arctic (area between the Colville and Canning Rivers), the National Petroleum Reserve Alaska (NPRA), the Beaufort Sea Outer Continental Shelf (OCS), and the Chukchi Sea OCS areas. Weather Winter temperatures across the North Slope frequently dip to minus 3 degrees Fahrenheit with extreme winds, resulting in severe chill factors. The lowest recorded temperature was minus 62 degrees Fahrenheit. The highest recorded temperature was 83 degrees Fahrenheit. Even in the warmest month, July, the average daily temperature is only 4 degrees Fahrenheit. Producing fields To date, oil production has been from fields located in the Central Arctic, an area spanning 122 miles from the Colville to Canning Rivers. These fields are primarily on state lands and adjacent waters of the Beaufort Sea. Northstar produces from both state and federal waters in the Beaufort Sea. Roads and causeways BP maintains more than 3 miles of roads and causeways in Greater Prudhoe Bay. To move materials and supplies to remote locations temporary ice roads may be constructed during the winter. NPRA Trans Alaska Pipeline Fairbanks Anchorage MAP LOCATION ANWR Prudhoe Bay Fiord (ConocoPhillips) Nuiqsut Alpine (ConocoPhillips) Nanuq (ConocoPhillips) NPRA Alpine Pipeline Tarn (ConocoPhillips) BP 39% Oooguruk (Caelus) Nikaitchuq (ENI) Kuparuk (ConocoPhillips) BP 39% Milne Point (Hilcorp) BP % Northstar (Hilcorp) Greater Prudhoe Bay (BP - 26%) Trans Alaska Pipeline System (TAPS) BP 48% Point McIntyre (BP - 26%) West Beach (BP - 26%) Lisburne (BP - 26%) Deadhorse Niakuk (BP - 26%) Endicott (Hilcorp) Liberty Prospect (Hilcorp) BP 4% Badami Pipeline Meltwater (ConocoPhillips) Operated by others ANWR BP 39% 26 (BP equity) 27 Badami (Miller) Valdez Pt. Thomson Pipeline MILES Pt. Thomson (ExxonMobil) BP 32% Juneau 1

15 BP Exploration (Alaska) Inc. 9 E. Benson Blvd. P.O. Box Anchorage, AK Main switchboard: Alaska Press Office: alaska.bp.com