ConocoPhillips has started oil production from its Coyote 3SX development in Alaska’s Kuparuk River Unit, bringing the approximately $800 million project online ahead of schedule and under budget. The company sanctioned Coyote 3SX in October 2025 and began construction in early 2026, with the development expected to reach approximately 12,000 barrels per day of gross peak production.
Located on state land on Alaska’s North Slope, Coyote 3SX was developed using existing infrastructure within the Kuparuk River Unit. Construction activity peaked in April 2026 with approximately 365 workers on site. Additional pipeline infrastructure will accommodate increasing production as Coyote volumes ramp through 2026 and beyond.
The development is part of ConocoPhillips’ broader strategy to sustain and expand production from its established North Slope assets. The company says it invests approximately $1 billion annually in Alaska projects such as Coyote, supporting continued production and throughput on the Trans-Alaska Pipeline System (TAPS), which transports North Slope crude approximately 800 miles to the Valdez Marine Terminal.
For oilfield service companies and suppliers, Coyote 3SX is part of a wider base of upstream activity underway in Alaska. OilGasLeads 2026 well-spud data shows 81 wells spud in the state, with Hilcorp Energy Company and ConocoPhillips accounting for the majority of recorded activity.
2026 Alaska Wells Spud by Account
| Account | Wells Spud |
|---|---|
| Hilcorp Energy Company | 50 |
| ConocoPhillips Company | 25 |
| OIL SANDS ONE LIMITED | 5 |
| SANTOS USA CORP. | 1 |
| Total | 81 |
Hilcorp accounts for approximately 62% of the wells in the dataset, while ConocoPhillips represents another 31%. Combined, the two operators account for roughly 93% of recorded 2026 Alaska spud activity, demonstrating the concentration of current drilling among the state’s leading operators.
2026 Alaska Wells Spud by County
| County | Wells Spud |
|---|---|
| BEECHEY POINT | 60 |
| HARRISON BAY | 21 |
| Total | 81 |
The geographic data shows activity is similarly concentrated. Beechey Point accounts for 60 wells, or approximately 74% of the records, while Harrison Bay accounts for the remaining 21 wells.
Industry Impact
Coyote 3SX adds incremental production to an Alaska market already showing active drilling and capital investment. ConocoPhillips’ potential 12,000 barrels per day of additional gross production, combined with 25 wells spud by the company in the 2026 OilGasLeads dataset, points to continued demand across drilling, production facilities, pipelines, maintenance, integrity, logistics and other North Slope oilfield services. For suppliers and contractors, the concentration of activity among a small group of operators provides a defined target market for companies pursuing Alaska upstream opportunities.
Subject Line
ConocoPhillips Starts $800M Alaska Coyote 3SX Production
Two-Sentence Summary
ConocoPhillips has started production from its approximately $800 million Coyote 3SX development in Alaska’s Kuparuk River Unit, with gross peak output expected to reach 12,000 barrels per day. OilGasLeads data shows 81 Alaska wells spud in 2026, including 25 associated with ConocoPhillips, highlighting continued upstream activity across the state.
Author: phinds