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Providing coverage of Alaska and northern Canada's oil and gas industry
June 2014

Vol. 19, No. 23 Week of June 08, 2014

BP, Hilcorp starting pipeline transfer

BP Transportation (Alaska) Inc. is asking regulators to transfer all or some of five pipelines to a new Hilcorp subsidiary

Eric Lidji

For Petroleum News

As part of a larger sale of North Slope assets, BP Transportation (Alaska) Inc. is asking regulators to transfer control of five pipelines to a new Hilcorp Alaska LLC subsidiary.

The local BP pipeline subsidiary is asking the Regulatory Commission of Alaska for permission to transfer all or some of its interest in the Northstar Oil Pipeline, the Northstar Gas Pipeline, the Milne Point Oil Pipeline, the Milne Point Natural Gas Liquids Pipeline and the Endicott Pipeline to the Hilcorp subsidiary Harvest Alaska LLC.

In April, BP Exploration (Alaska) Inc. announced plans to sell total working interest in the Northstar and Endicott units and 50 percent working interest in the Milne Point unit and the Liberty field to Hilcorp, a large privately held independent active in Cook Inlet.

The Northstar Pipeline Co. owns both Northstar pipelines. The pipeline subsidiary is a joint venture between BP Transportation (Alaska) Inc. and Murphy Exploration (Alaska) Inc. BPTA is asking to transfer its 98.5772 percent interest in the company to Harvest.

The Northstar Oil Pipeline carries crude oil from the Seal Island production facility to Pump Station 1 of the trans-Alaska oil pipeline. The Northstar Gas Pipeline carries crude fuel gas and injection gas from the Prudhoe Bay Unit Central Gas Compression Facility to the Seal Island production facility. The pipelines have been operational since 1999.

BP Transportation (Alaska) wholly owns Milne Point Pipeline LLC, which owns the Milne Point Oil Pipeline and Milne Point Natural Gas Liquids Pipeline. Through the sale, BP would transfer a 50 percent interest in the Milne Point pipeline subsidiary to Harvest.

The Milne Point Oil Pipeline came online in 1985 to carry crude oil from the Milne Point unit to the Kuparuk Pipeline, which connects to the trans-Alaska oil pipeline. The Milne Point Natural Gas Liquids Pipeline came online in 2001 to carry natural gas liquids from the Oliktok Pipeline to the Milne Point Central Facilities Pad. The pipeline was purged and disconnected in 2006, but remains a potential link between the fields. Late last year, the Oliktok Pipeline Co. proposed converting the Oliktok Pipeline from a natural gas liquids import line to a natural gas import line to meet needs a at the Kuparuk River unit.

The Endicott Pipeline Co. is a joint venture between BP Transportation (Alaska), its affiliate Amoco Endicott and its partners Exxon Pipeline Co. and Unocal Pipeline Co.

BPTA is asking to transfer its 57.5607 percent interest and Amoco Endicott is asking to transfer its 10.5139 percent interest in the subsidiary to Harvest. Those percentages include Doyon Ltd. and Nana Regional Corp. shares recently transferred to BPTA.

The Endicott Oil Pipeline came online in 1989 to carry crude oil from the offshore Endicott Main Production Island to Pump Station 1 of the trans-Alaska oil pipeline.






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