AOGCC report: August 2017

Eric Lidji

For Petroleum News

• On Aug. 9, the Alaska Oil and Gas Conservation Commission approved (Area Injection Order No. 21B.002) a request from ConocoPhillips Alaska Inc. to conduct an approximately two-week water injectivity test on the Kuparuk River Unit 2P-429 well.

ConocoPhillips originally developed the Meltwater satellite of the Kuparuk River unit using water alternating gas enhanced oil recovery. A switch to gas injection in 2009 changed the gas-to-oil ratio of the field “to the point where they are no longer consistently competitive producers.” The company believes that converting the field to water injection will resolve the problem and increase ultimate oil recovery.

The proposed injection program would involve different limits than those allowed under the existing Area Injection Order for the Meltwater oil pool, requiring a short-term test.

• On Aug. 9, the AOGCC released Industry Guidance Bulletin No. 10-02B, clarifying certain injection well mechanical integrity pressure test requirements in state code.

The bulletin covers testing preparations and reporting requirements.

• On Aug. 18, the AOGCC approved (Area Injection Order No. 2C.045) a request from ConocoPhillips to continue water injections at the Kuparuk River Unit 2M-30 well.

The company reported a potential Tubing x Inner Annulus pressure communication on June 10 during gas injections. The company switched to water-alternating-gas injections for 30 days and subsequently passed a non-witnessed Mechanical Integrity Test, convincing the AOGCC of the integrity of the well for water-only injections.

• On Aug. 21, the AOGCC approved (Area Injection Order No. 2C.046) a request from ConocoPhillips to continue water injections at the Kuparuk River Unit 3S-09 well.

The company reported a potential Tubing x Inner Annulus pressure communication on June 12 during gas injections. The company switched to water-alternating-gas injections for 30 days and subsequently passed a non-witnessed Mechanical Integrity Test, convincing the AOGCC of the integrity of the well for water-only injections.

• On Aug. 31, the AOGCC approved (Area Injection Order No. 18D.001) a request from ConocoPhillips to continue water injections at the Colville River Unit CD2-73 well.

The company reported a potential outer annulus x atmosphere pressure communication on May 2 and that same day completed diagnostic evaluations, including a non-witnessed Mechanical Integrity Test, convincing the AOGCC of the integrity of the well.

• On Aug. 31, the AOGCC issued a decision (Other Order 125) requiring Aurora Exploration LLC to post a series of bonds in order to take over the operatorship of the Nicolai Creek field from Aurora Gas LLC, as reported elsewhere in this issue.

- ERIC LIDJI