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Providing coverage of Alaska and northern Canada's oil and gas industry
January 2010

Vol. 15, No. 4 Week of January 24, 2010

DEC proposes new Nikaitchuq air permit

The Alaska Department of Environmental Conservation is planning to issue a new air permit to Eni Petroleum for ongoing work at the onshore-offshore Nikaitchuq project.

The new permit would include offshore facilities currently under construction in the Air Quality Control Minor Permit originally granted for the project nearly five years ago.

The state originally issued the permit to Kerr McGee Oil & Gas Corp., the Denver independent that first sanctioned development of Nikaitchuq in 2006, and then revised the permit when Italian major Eni acquired the prospect around the same time.

Kerr McGee planned to develop Nikaitchuq in two phases — an onshore production pad at Oliktok Point followed by a future offshore pad — and only permitted the first.

Concurrent development

Eni is developing the prospect concurrently from onshore and offshore facilities, requiring modeling and studies to gauge the air quality impacts of the additional pad.

According to the state, Eni “requested to revise the emission unit inventory, ambient air quality protection requirements, and Owner Requested Limits (ORLs) to avoid Prevention of Significant Deterioration (PSD) classification” from the original permit.

Since its original revision, Eni submitted but withdrew two other air permit applications.

Eni is currently anticipating first oil from the onshore facilities at Nikaitchuq by the end of 2010, with first oil from the artificial offshore gravel island to follow.

—Eric Lidji






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