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February 2008

Vol. 13, No. 7 Week of February 17, 2008

January ANS production down 3%

Kristen Nelson

Petroleum News

Led by an 8.5 percent drop at the BP Exploration (Alaska)-operated Northstar field, Alaska North Slope crude oil production was down 3.4 percent in January, averaging 730,337 barrels per day compared to December’s average of 755,807 bpd. January’s average is just above the Alaska Department of Revenue’s projection of 731,000 bpd for fiscal year 2008.

With the exception of a slight increase at BP Exploration (Alaska)’s Milne Point field, all other fields in the Revenue report ended January with an average lower than their Jan. 1 production rate.

From Jan. 20 to Jan. 26, overall ANS production dropped below 700,000 bpd, led by Prudhoe Bay, Kuparuk field and Endicott (a portion of production shown as Endicott currently comes from Flow Station 2 at Prudhoe Bay).

ANS production peaked at slightly more than 2 million barrels per day in 1989 and has declined ever since. Revenue said in its fall forecast that it expects ANS volumes will decline by 1.2 percent to about 731,000 bpd in fiscal year 2008, the fiscal year that ends in June. For FY 2009, beginning in July, the department expects a 4.1 percent decrease in production based on “increased planned and unplanned maintenance on aging facilities, flowlines, pipelines and wells.”

Numbers up at three fields

The BP-operated Endicott, Lisburne and Milne Point fields had increased production, January over December.

Endicott, which includes some 33,000 bpd of Prudhoe Bay oil, averaged 45,698 bpd, up 5.4 percent from a December average of 43,371 bpd.

Lisburne, including Point McIntyre and Niakuk, averaged 35,576 bpd in January, up 3 percent from a December average of 34,526 bpd.

Milne Point production averaged 34,966 bpd, up 1.3 percent from a December average of 34,515 bpd. Milne Point includes Sag River and Schrader Bluff.

Fields in decline

Production from all currently producing North Slope fields is in overall decline; the fields are past their peak production rates.

Northstar averaged 33,442 bpd in January, down from 36,538 bpd in December, a 3,096-bpd average drop in production.

Alpine, a much larger field, had a larger per-barrel drop, 6,648, for a smaller percent drop, 5.71 percent.

Revenue’s monthly figures show Alpine production averaged 109,557 bpd in January, down from a December average of 116,205 bpd. Recent Alpine production peaked in September at 126,202 bpd.

The department’s monthly volumes include the Fiord and Nanuq Alpine satellites while its forecast separates Alpine production from those of its satellites.

Alpine came online in 2000 and averaged 38,000 bpd in FY 2001; it peaked at 123,000 bpd in FY 2006. The department forecast FY 2007 production at 105,000 bpd. Fiord and Nanuq came online in FY 2007 at 8,000 and 9,000 bpd respectively.

Combining the forecast volumes — to correspond to monthly reporting — projected Alpine production is 122,000 bpd for FY 2007; 115,000 bpd for FY 2008, when both Fiord and Nanuq are expected to peak; and 110,000 bpd for FY 2009, when both Alpine and the satellites are in decline.

Prudhoe down 4.7 percent

BP-operated Prudhoe Bay, which includes production from the Aurora, Borealis, Midnight Sun, Orion and Polaris satellites, as well as some 400-600 bpd from Lisburne and Point McIntyre, averaged 321,693 bpd in January, down 4.7 percent from a December average of 337,490, a drop of some 15,797 bpd.

The ConocoPhillips Alaska-operated Kuparuk River field, including Tabasco, Tarn, Meltwater and West Sak, averaged 149,405 bpd in January, down 2.5 percent from a December average of 153,162 bpd.

The temperature at Pump Station No. 1 on the North Slope averaged minus 16.9 degrees Fahrenheit, compared to minus 0.9 degrees F in December and to an eight-year average for January of minus 11.4 degrees F.

Cook Inlet production dropped 13.9 percent, averaging 13,358 bpd in January, down from 15,515 bpd in December.






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