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NEWS BULLETIN

October 16, 2015 --- Vol. 21, No. 45October 2015

AOGCC approves gas offtake for AKLNG

The Alaska Oil and Gas Conservation Commission has issued orders approving the future export of gas from the Prudhoe Bay and Point Thomson fields on the North Slope. BP and ExxonMobil, the operators of the two fields, had asked for the approvals prior to a major decision on whether to move ahead with the engineering and design work for a proposed project, known as AKLNG, for the export and sale of liquefied natural gas produced from gas delivered by a major gas line from the North Slope.

The commission has approved an annual average daily gas offtake of 3.6 billion cubic feet from the Prudhoe Bay field and of 1.1 bcf from Point Thomson. However, when Point Thomson starts production, scheduled for early 2016, the field will initially produce condensate rather than gas, recycling the gas for condensate production. The idea is to transition to eventual gas production if the AKLNG project moves ahead.

The AOGCC order for Point Thomson requires a report on field performance after five years of initial condensate production, to review whether a development plan targeting the eventual export of gas from the field will optimize ultimate hydrocarbon recovery, as currently envisaged.

- ALAN BAILEY

See stories in Oct. 25 issue, available online Friday, Oct. 23, at www.PetroleumNews.com

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