BP Hopes For Alaska Arctic Oil Production In Beaufort Sea In 2013

02/05/2011 06:20 pm ET | Updated May 25, 2011

JUNEAU, Alaska — BP PLC estimates that it could begin producing oil off Alaska's coast in 2013, despite the fact that construction of the massive Liberty rig has been suspended indefinitely.

BP said last fall that it was suspending construction of the rig to review its engineering and design plans, and ensure the Liberty project can be done safely.

The unusual project calls for using a manmade gravel island in the Beaufort Sea as a drilling base. A rig would drill horizontally for six to eight miles to tap what BP estimates is a 100-million-barrel reserve of recoverable oil.

BP Alaska spokesman Steve Rinehart says the project review is progressing but he couldn't say when it would be complete or when construction would resume.

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