Hilcorp buying Exxon out of Endicott line
Hilcorp Alaska acquired certain of BP’s North Slope assets in early 2014, including all of BP’s interests in the Endicott and Northstar oil fields and a 50 percent interest in Liberty and Milne Point. BP’s interests in oil and gas pipelines associated with those fields were also included.
Hilcorp and ExxonMobil Pipeline Co. are now applying to the Regulatory Commission of Alaska for approval of a transfer of ExxonMobil’s share of the Endicott Pipeline Co. to Hilcorp subsidiary Harvest Alaska LLC.
In a request received by RCA June 5, Harvest Alaska and ExxonMobil Pipeline applied jointly for commission approval of the transfer of ExxonMobil’s share of the Endicott Pipeline Co., slightly more than 21 percent, to Harvest Alaska, which already owns some 68.5 percent of the line. The remaining almost 10.5 percent is held by Unocal Pipeline Co.
Following approval of the application, Harvest Alaska would own some 89.5 percent of the line.
The application notes that the Endicott Pipeline was built in 1987 and certificated by the commission in 1989 to transport crude oil from the Endicott main production island to the trans-Alaska oil pipeline at Pump Station No. 1 via a connection with the Northstar Pipeline near PS-1.
Endicott also moves crude oil from the Badami Oil Pipeline, which connects to the Endicott line at approximately its midpoint and moves natural gas condensate originating at ExxonMobil’s Point Thomson field via the Badami Oil Pipeline. The Endicott line has a capacity of some 100,000 barrels per day and a currently estimated remaining economic life of six years, “which could be extended if new or additional oil production is developed in the area that it serves, or if natural gas condensate produced from the Point Thomson Field requires transport to TAPS Pump Station No. 1 beyond 2024,” the companies said in their application to RCA.
Harvest AlaskaThe Endicott Pipeline is operated by Harvest Alaska, which was formed in 2014 as a wholly owned subsidiary of Hilcorp Alaska. Hilcorp Alaska owns interests in and operates 30 oil and gas field production facilities in Cook Inlet and on the North Slope and employs 472 people in Alaska. Hilcorp began acquiring Cook Inlet properties in 2011 and began operating in 2012.
Hilcorp Alaska and provides operational support to Harvest Alaska for the subsidiary’s North Slope and Cook Inlet oil and gas pipelines, including the Endicott Pipeline.
Harvest Alaska employs 28 people in Alaska and operates and manages several oil and gas pipeline systems in Cook Inlet and on the North Slope. Cook Inlet pipelines operated and owned, in whole or in part, by Harvest Alaska include the Swanson River Oil Pipeline, the Cook Inlet Pipeline Co.’s oil pipeline and Kenai Beluga Pipeline. On the North Slope, Harvest Alaska operates the Northstar Oil Pipeline, the Northstar Gas Pipeline, the Endicott Pipeline, the Milne Point Oil Pipeline and the Milne Point Natural Gas Liquids Pipeline. Harvest Alaska also owns, in part or in whole, those North Slope pipelines.