Despite legislative and financial hurdles, Plains Exploration & Production Co. (PXP) said Thursday that it is determined to move forward with its Tranquillon Ridge offshore oil and gas project in northern Santa Barbara County.
The project was denied in January by the State Lands Commission in a 2-1 vote, but PXP attempted to override the decision in the form of a budget proposal.
The budget plan was shot down by the Assembly in late July, and PXP’s shares dropped 8.5 percent, according to SmarTrend. The same shares had jumped up 10 percent earlier in July when the Assembly was expected to pass the proposal.
“We will aggressively utilize this time to address and remedy any misconceptions that groups and individuals may have regarding the project,” the company said in its quarterly report released Thursday.
The project’s progress was approved by the Santa Barbara County Board of Supervisors in October 2008 and has been supported by Gov. Arnold Schwarzenegger, the state Senate and environmental groups, including the Environmental Defense Center.
PXP proposes drilling off the coast of Vandenberg Air Force Base in exchange for millions of dollars allocated to both Santa Barbara County and the state of California. The company would use existing platforms and pipelines and shut down production in 2022.
According to the quarterly report, PXP had a net income of $43.6 million and 37 cents per diluted share. The company focuses on oil and gas projects off the California coast, in the Gulf of Mexico and in Texas.
“The T-Ridge project is a unique opportunity for California and PXP to significantly accelerate the end of oil production and drilling operations offshore,” Steve Rusch, PXP’s vice president for environmental, health, safety and government affairs, said in a news release.
California also will receive land donations and alternative energy support in the form of a “several billion-dollar revenue stream to help bridge the current fiscal crisis,” he said.
— Noozhawk staff writer Giana Magnoli can be reached at gmagnoli@noozhawk.com.