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Providing coverage of Alaska and northern Canada's oil and gas industry
January 2019

Vol. 24, No 2 Week of January 13, 2019

Exxon continues tackling tech challenges

Compressors performing well in handling high pressure Thomson sands; field infrastructure bodes well for more development to east

Kay Cashman

Petroleum News

By building pipeline infrastructure at its Point Thomson unit, ExxonMobil improved the development economics of nearby on and offshore oil and gas prospects across the eastern North Slope.

In order to get Point Thomson online - and keep it producing condensate as required in its plans of development for the state of Alaska - the company has faced numerous technical challenges in the high-pressure Thomson sands.

From warm shut-down to record output

Per a page 1 story in last week’s issue of Petroleum News, “Thomson at full production,” Exxon’s investment of time and money is starting to pay off - knock on wood because Point Thomson output has been up and down since its startup in April 2016: In November, the field produced its highest ever daily average, 9,949 barrels per day.

In October, Point Thomson produced 5,129 bpd; in September 93 bpd.

The field had effectively been in warm shut-down for maintenance since early June.

In July, Exxon officials were unwilling to speculate when Point Thomson would go back online, indicating they and their contractors were working diligently to bring it up.

Advanced technology key

In a Point Thomson plan of development submitted to the state almost two years ago, Exxon said production to date had been impacted by gas injection compressor equipment, referring to the compressors as “industry-first,” which likely explains their serial numbers, 001 and 002.

Development of the Point Thomson field required handling reservoir pressures upwards of 10,000 pounds per square inch, a pressure corresponding to “the effect of an elephant standing on the end of someone’s thumb,” former Exxon production manager Cory Quarles said in mid-May 2016.

Advanced technology has been key to producing the high-pressure field, the plan of development indicated.

The reservoir pressure at Point Thomson is the “highest in ExxonMobil’s portfolio,” Quarles said, and possibly the highest of any natural gas recycling project in the world, per Petroleum News research.

Two compressors online

Since each compressor allows the field to produce 5,000-6,000 bpd, both are apparently online and working well.

Point Thomson’s Initial Production System, or IPA, was designed to produce 200 million cubic feet of recycled gas for reinjection and 10,000 barrels of condensate a day; condensate being a liquid hydrocarbon akin to very light oil.

A state official told Petroleum News July 31, “Point Thomson would be tough for any other major to deal with, but Exxon keeps whittling away at the problem. We’re fortunate they’re operating that field. I doubt it would ever have been developed otherwise,” he said, crediting “Exxon’s deep pockets and technical savvy.”

Eastern North Slope boon

Off and on over the years the conversation about Point Thomson focused largely on its importance to any future North Slope natural gas pipeline project because of the unit’s large natural gas reserves.

An additional topic has become increasingly popular: the importance of the most easterly North Slope field and its pipeline infrastructure that connects it with the Badami line to the west and ultimately to the trans-Alaska oil pipeline at Pump Station No. 1.

The pipeline infrastructure is especially important to leaseholders with undeveloped oil prospects farther east, such as Yukon Gold, Stinson, Sourdough (see related story on page 1 of this issue) and ultimately any future activity at the 1002 area of the Arctic National Wildlife Refuge.

The Point Thomson line is currently capable of shipping 70,000 bpd, but it can be expanded.






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