Sale of Oooguruk to Caelus not yet complete

The sale of Pioneer Natural Resources’ Alaska assets, including the Oooguruk oil field in the nearshore waters of the Beaufort Sea, to Caelus Energy Alaska has not yet completed, Pioneer spokesman Casey Sullivan confirmed to Petroleum News in a Jan. 6 email.

“We are hopeful for a closing this month,” Sullivan said.

When the two companies announced the sale in October they said they hoped to close the sale by the end of 2013.

Pioneer wants to sell its Alaska properties to raise capital for its shale oil program in the Lower 48.

In October James Musselman, president and CEO of Caelus, said his company has been interested in entering the Alaska oil industry and that it saw the purchase of Oooguruk as an excellent opportunity to do so. Musselman said that he anticipates investing $300 million in the Alaska assets and hopes to raise in excess of $1 billion for investment in Alaska, potentially spending $1.5 billion in the state over the next five to six years.

An immediate priority would be the development of Nuna, an as-yet undeveloped oil pool in the Oooguruk unit.

The Alaska Department of Natural Resources has been reviewing the purchase agreement between the two companies. In addition to transferring title to the Pioneer leases, the state needs to ensure that its interests are protected. Issues for review include arrangements for the transfer of obligations for the eventual removal of oilfield facilities.

“DNR and Caelus have been frequently meeting over the past two months regarding Caelus’ acquisition of Pioneer’s Alaska operations,” DNR spokeswoman Elizabeth Bluemink told Petroleum News in a Jan. 6 email. “We are making progress in this regard and are working diligently on all aspects of the transaction, including royalty relief and DR&R (dismantlement, removal and restoration).”

—Alan Bailey