RCA OKs Nikaitchuq interconnection

State regulators have approved a connection between the Nikaitchuq unit and the Kuparuk Pipeline, paving the way for oil deliveries from Nikaitchuq in the near future.

The Regulatory Commission of Alaska approved the connection in an order dated Dec. 13. The ruling allows Eni Petroleum to connect a 10-inch gathering line to the Kuparuk Pipeline that feeds into the trans-Alaska oil pipeline at Pump Station 1.

According to filings supporting the request, Eni will pay $125,000 to connect the two pipelines, a cost that will not be included in future Kuparuk Pipeline shipping rates.

Once the connection is in place, Eni can technically move crude oil from its nearshore Nikaitchuq field, through its new onshore processing facilities and onto market. Before sales can officially begin, though, Eni must finalize various regulatory requirements.

Eni is developing Nikaitchuq from a combination of onshore and offshore facilities located at Oliktok Point and Spy Island, respectively. The company expects to begin onshore production within the next few weeks and begin offshore drilling in mid-2011.

—Eric Lidji