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ConocoPhillips raised its total spending plans for the Willow oil and natural gas project in Alaska to as much as $9 billion, citing inflation and other rising costs.
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The Houston oil giant, which initially estimated that its spending on the North Slope project was in the range of $7 billion to $7.5 billion, now expects oil production there to begin in early 2029, according to a statement Thursday.
General inflationary costs of about $700 million are the biggest driver of the higher range of $8.5 billion to $9 billion.
Shares of ConocoPhillips, which reported third-quarter earnings Thursday that beat analysts’ estimates, rose 0.8% before the start of regular trading in New York.
ConocoPhillips has operated in Alaska for decades. Now, fitting squarely into President Donald Trump’s push for more domestic oil production, the company is looking to diversify its portfolio as shale basins in Texas age. The Willow project is expected to produce about 600 million barrels of crude over 30 years.
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