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April 2007

Vol. 12, No. 14 Week of April 08, 2007

ANS oil production down 1.4 percent

Northstar back up, but most fields have declining February to March production averages; ANS averages 764,273 bpd for March

By Kristen Nelson

Petroleum News

The BP Exploration (Alaska)-operated Northstar field began coming back up March 6 after going offline Feb. 16 for pipeline replacement, but average Alaska North Slope crude oil production for March was still down 1.36 percent from February, averaging 764,273 barrels per day in March compared to 774,837 bpd in February.

The numbers are in line with the fall 2006 production forecast of 740,000 bpd for fiscal year 2007, which ends June 30. That forecast was a drop of 7.9 percent from actual production of 845,000 bpd in fiscal year 2006. The fall revenue projection is 782,000 bpd for fiscal year 2008.

The fall forecast for the price of ANS crude oil on the West Coast was $59.15 a barrel. Revenue’s published March price was $59.01.

The Alaska Department of Revenue Tax Division said a March 13 gas compressor problem at the BP-operated Endicott field resulted in a 5,000 bpd decrease in output.

On March 16 there was a 78 percent trans-Alaska oil pipeline proration caused by high inventories at Valdez after bad weather prevented tanker loadings. Output returned to 100 percent on March 18, the division said.

Inventories at Valdez started the month at 3.4 million barrels, topped 5 million barrels March 15 and peaked at 5.7 million barrels March 16. The level dropped to 3.8 million barrels March 18 and ended the month at 4.8 million barrels.

Northstar averaged 33,043 bpd in March, up 22.3 percent from a February average of 27,013 bpd, with production peaking at more than 49,000 barrels on a daily basis. The field’s production had averaged 44,234 bpd in February prior to the shutdown, ordered after discovery of a pinhole leak in an eight-inch discharge pipe in the field’s gas compression facility. Sixty feet of eight-inch and 120 feet of 14-inch pipe were replaced.

The only other field with a month-to-month increase was the ConocoPhillips Alaska-operated Kuparuk field, where production increased 2.4 percent, averaging 168,632 bpd in March, up from 164,626 bpd in February. Kuparuk production includes West Sak, Tabasco, Tarn, Meltwater and Palm.

Lisburne has largest decline

The BP-operated Lisburne field had the largest month-to-month percentage decline, dropping 11.75 percent, to an average of 18,370 bpd in March compared to 20,816 bpd in February.

Production from the ConocoPhillips-operated Alpine field dropped 4.2 percent, averaging 122,878 bpd in March compared to 128,210 bpd in February. Alpine production includes Fiord and Nanuq.

Production at BP’s Milne Point field averaged 27,540 bpd in March, down 7.2 percent from a February average of 29,681 bpd. Milne Point production includes Schrader Bluff.

Production at BP-operated Prudhoe Bay averaged 343,060 bpd in March, down 2.68 percent from a February average of 352,522 bpd. Prudhoe production includes Midnight Sun, Aurora, Polaris, Borealis and Orion.

Greater Prudhoe Bay production, which includes Lisburne and some 33,000 bpd of Prudhoe Bay Flow Station 2 crude presently carried through the Endicott line, averaged 394,430 bpd in March, down 2.93 percent from a February average of 406,338 bpd.

BP-operated Endicott — including the 33,000 bpd of Prudhoe Bay oil — averaged 50,750 bpd in March, down 2.35 percent from a February average of 51,969 bpd. Endicott production includes Sag Delta, Eider and Badami.

The North Slope temperature at Pump Station No. 1 averaged minus 17.5 degrees Fahrenheit in March, compared to a five-year average March temperature of minus 9 degrees F. The February temperature averaged minus 10.2 degrees F.

Cook Inlet crude oil production averaged 15,773 bpd in March, up 1.56 percent from a February average of 15,530 bpd.






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