NEWS BULLETIN

December 18, 2008 --- Vol. 14, No. 115December 2008

Third replacement Prudhoe transit line in service

The third of four BP Exploration (Alaska) Prudhoe Bay replacement transit lines went into service Dec. 12 and the fourth and final replacement line is scheduled to be in service by Christmas, BP spokesman Steve Rinehart told Petroleum News yesterday.

The transit line replacements are the result of corrosion found in transit lines at the field in 2006.

The cost had been pegged at some $260 million, although Rinehart told Petroleum News earlier this year that costs had climbed since that estimate was done.

The cost is now put at about $500 million, Rinehart said.

The earlier estimates “did not take into account all the added facilities, additional modules and construction,” he said in an e-mail. Rinehart also said that “significant resources” were added to make sure the work was completed by the end of the year.

The first replacement transit line, three miles on the west side, came into service in March, followed by a three-mile line on the east side in September.

The line which went into service Dec. 12 was five miles on the west side.

The final replacement transit line is a five-mile section on the east side.

See full story in Dec. 21 issue of Petroleum News, available to subscribers online at noon, Friday, Dec. 19 at www.PetroleumNews.com

Anadarko applies to drill at Wolf Creek in NPR-A

Anadarko Petroleum has applied for a permit to drill a gas exploration well in the National Petroleum Reserve-Alaska, according to filings with federal authorities.

The Bureau of Land Management posted notice on Dec. 16 of the application from Anadarko to drill the Wolf Creek No. 4 exploration well, about 30 miles west of Umiat.

In September, Anadarko staked three wells at the Wolf Creek Prospect, all situated on federal lease AA-86604 in the northeast planning area of the reserve.

Anadarko previously told Petroleum News it plans to use the Doyon Arctic Fox rig to drill Wolf Creek No. 4 to a depth of around 4,000 feet to test the Nanushuk formation.

Anadarko is planning to use two rigs to drill three exploration wells this winter.


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