An oil rig, Doyon Drilling's Rig 26 (D26), toppled over during transport on January 23rd. The incident resulted in a small fire and minimal environmental damage, with no injuries reported and no impact to local oil infrastructure. Doyon Drilling is leading the investigation and response to the incident.

Impact on ConocoPhillips' Operations

The rig was slated for a significant role in ConocoPhillips' Alaska operations. It was one of two rigs designated for a four-well exploration program in 2026, with each rig scheduled to drill two wells. Furthermore, D26 was also planned to be one of two rigs conducting predrilling work at the massive Willow development starting in 2027.

Despite this, ConocoPhillips executives stated the incident should have no impact on its exploration plans or the Willow project. The company has sufficient active rigs in Alaska to backfill the responsibilities of the incapacitated unit. The exploration program continues, and the company plans to pivot rigs back to development work after the exploration season.

Willow Project Status and Exploration

The rig collapse occurred about two months after ConocoPhillips revealed approximately $1 billion in cost overruns at the Willow project, which it attributed to inflation and labor issues. Willow is a 180,000 barrel-per-day project targeting first oil in 2029. Despite these setbacks, work at Willow is reported to be on track and proceeding well, with a milestone of 50% completion expected in the coming months. Current focus is on completing gravel work for roads, pads, and an airstrip to ensure efficient year-round access, alongside ongoing pipeline and bridge construction.

ConocoPhillips is also actively exploring regions west and south of the Willow development. The goal is to tie back any potential discoveries to the under-construction Willow hub. The company has made strong early progress on its four exploration wells, having spudded the first well recently. While it is too early to identify resource volumes, the company has high aspirations for the prospect, viewing it as an opportunity to identify additional resources that can utilize the planned Willow infrastructure.