ARCO exploring sale involving Midcontinent pipeline
ARCO said Feb. 11 that it is conducting a search for a suitable buyer for elements of its Midcontinent pipeline operations, ARCO Pipe Line Co. Any transaction, the company said, would be contingent on completion of ARCO's proposed combination with BP Amoco.
In the U.S. Federal Trade Commission's review of BP Amoco's proposed acquisition of ARCO, the agency raised concerns about possible effects of combining certain assets of ARCO and BP Amoco in the Cushing, Okla., area. The FTC included the Cushing concerns in its U.S. District Court filing challenging the combination.
ARCO said that it does not consider the FTC concerns to be valid, but is exploring the potential sale to address those concerns.
ARCO's Midcontinent interests include crude and products pipelines from the Gulf Coast to Cushing, Midcontinent crude trading services, petrochemicals pipeline systems and various non-operated joint interest activities.
January ANS production down 3 percent from December rates
Alaska North Slope production averaged 1,058,930 barrels a day in January, down 2.84 percent from an average of 1,089,848 barrels a day in December. The largest percentage decline was at Endicott, where production averaged only 37,750 barrels per day in January, down 9.5 percent from an average of 41,697 barrels a day in December.
Economist Denise Hawes of the Alaska Department of Revenue Division of Oil and Gas Audit said Endicott reported unidentified problems Jan. 22-24.
Prudhoe Bay production had the largest per barrel drop, averaging 609,066 barrels a day in January down 13,926 barrels a day from an average of 622,992 barrels a day for December (a 2.24 percent drop); Hawes said work continues on piping at Prudhoe Bay to allow oil to go through one meter.
As of Jan. 31, the department said, fiscal year-to-date production is averaging 1.043 million barrels a day, 15,000 barrels a day below the department's fall 1999 projection of 1.058 million barrels a day for fiscal year 2000.
BP applies for EOR rules for Eider pool at Endicott, also to expand Duck Island unit
The Alaska Oil and Gas Conservation Commission said Feb. 4 that BP Exploration (Alaska) Inc. has applied for pool rules and enhanced recovery operations in the Eider pool at the Endicott field on the North Slope.
A hearing will be held at the commission March 28 beginning at 9 a.m.
BP has also applied to the Department of Natural Resources Division of Oil and Gas to expand the Duck Island unit and the Eider participating area within the unit. Duck Island is adjacent to the eastern boundary of the Prudhoe Bay unit on the North Slope.
The proposed expansion area is currently within the Prudhoe Bay unit and the PBU and Niakuk and Lisburne participating areas would be contracted. About 40 acres are affected.