Badami pipeline lease transfer approved

The Alaska Department of Natural Resources has approved the transfer of BP’s interest in the Badami pipeline right-of-way leases to Nutaaq Pipeline.

Nutaaq is a partnership of Savant (67.5 percent) and Arctic Slope Regional Corp.

Savant and ASRC in early 2012 acquired the Badami oil field from BP, and the pipeline lease transfer is a follow-up to that deal.

Badami is the easternmost producing field on Alaska’s North Slope.

Two pipelines crossing state land support Badami. One is a sales oil pipeline that ties into the Endicott pipeline to the west. The other is multipurpose utility line that parallels the oil line.

An 11-page DNR analysis said the transfer of the two right-of-way leases would result in a change of ownership of the Badami pipelines from BP to Nutaaq.

The “fit, willing and able” analysis included a review of Savant and ASRC financial statements.

Nutaaq will be covered by an $85 million spill insurance policy, with a $1 million deductible for each incident, the analysis said.

BP will retain decommissioning, restoration and remediation responsibility for the Badami pipelines as currently constructed, the analysis said.

BP continues to provide advice and support to Savant on operation of the pipelines, and Savant has hired several ex-BP and contract employees familiar with Badami, the analysis added.

DNR Commissioner Joe Balash approved the Badami lease transfer on Dec. 24.

—Wesley Loy