BP Exploration Alaska Inc. reported that it spent $953.7 million with contractors, service and support companies in 2003 to operate North Slope oil fields. The figure is down slightly from $1.08 billion the company spent with contractor and support companies in 2002.
About 84 percent, or $796 million, of the money was spent with Alaska-based firms, BP said in a report filed with the state of Alaska in October. BP's goal is to spend more than 80 percent of its third-party expenditures with firms based in Alaska, according to the annual report on Alaska-hire and purchasing that BP files each Sept. 30.
The figures do not include money BP spent in direct payroll, or taxes to the state and various municipalities.
Of the total $953.6 million spent with third parties in 2003, $744 million was spent for contract services, such as drilling and field maintenance support. BP also spent $209.6 million for goods, a broad category that includes industrial supplies, parts and equipment.
Companies like Nabors Alaska Drilling Co. and Doyon Drilling Inc. provide drilling services to BP on the North Slope. Doyon Drilling is owned by Doyon Ltd., the Interior Alaska Native regional corporation. Although Nabors is owned by an out-of-state parent company, it has maintained a major presence in Alaska for more than 40 years.
Maintenance and operations support services are provided by firms like Veco Alaska Inc. and ASRC Energy Services, both Alaska owned. ASRC Energy Services is the oil field subsidiary of Arctic Slope Regional Corp. of Barrow.
In addition to the operations spending, BP reported that it made an additional $5.4 million in charitable contributions in 2003. A similar amount was spent in 2002, according to the report.
About half of the company's charitable contributions, or $2.2 million in 2003, went to support education, the report said. About half of the education support was in contributions to the University of Alaska Foundation, which BP contributes to as a part of its charter agreement with the state.
