ConocoPhillips Wins Court Ruling For $7.5B Willow Project In Alaska: Report

Hydrocarbon company ConocoPhillips COP reportedly received judicial endorsement for its ambitious Willow oil project in Alaska, a major oil reserve estimated to hold around 600 million barrels.

This decision marks a notable setback for environmental advocates who have been contesting the project due to its potential environmental impact.

U.S. District Judge Sharon Gleason in Alaska upheld the Biden administration's approval of the project, clearing the way for ConocoPhillips to advance the $7.5 billion development in the National Petroleum Reserve-Alaska, according to a report from Bloomberg.

The project is poised to produce approximately 180,000 barrels of oil daily. Already in preparation, ConocoPhillips is gearing up for on-site operations, which could commence as early as the forthcoming winter season, the report added.

The Willow project garnered intense debate and scrutiny within the administration, reflecting a critical test of President Joe Biden's commitment to climate change mitigation.

Environmental groups, including the Center for Biological Diversity and the Natural Resources Defense Council, challenged the project by arguing that the government's approval violated environmental laws by underestimating the project's climate change and wildlife impacts.

The report noted Judge Gleason dismissed these environmental concerns, ruling that the Fish and Wildlife Service's decisions, particularly regarding the non-threat to non-denning polar bears, were within legal boundaries.

Conversely, Erik Grafe from Earthjustice expressed disappointment, with plans to appeal the ruling, as per the report.

Price Action: COP shares closed lower by 0.26% at $114.15 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.