Milne on track to double
ANS averages 529,271 bpd in January, up from December, but down from January 2019 Kristen Nelson Petroleum News
January North Slope crude oil and natural gas liquids production was up almost 1% from December, averaging 529,217 bpd, a month-over-month increase of 4,302 bpd, but a decrease of 1.5% from 537,493 bpd in January 2019.
ANS crude oil averaged 468,446 bpd in January, up 0.3%, 1,223 bpd, from a December average of 467,224 bpd, but down 2.7% from a January 2019 average of 481,178 bpd. North Slope NGLs averaged 60,770 bpd in January, up 5.3%, 3,083 bpd, from a December average of 57,688 bpd, and up 7.9% from a January 2019 average of 56,316 bpd.
Production data reported here is from the Alaska Oil and Gas Conservation Commission, which provides volumes by field and well on a month delay basis.
Milne Point Milne Point averaged 31,729 bpd in January, up 5.3%, 1,605 bpd, from a December average of 30,124 bpd, not the largest per-barrel or percent month over month increase - but at 41.7%, up from 22,385 bpd in January 2019, production growth at the field year-over-year on a percent basis topped other fields by a wide margin.
Field operator Hilcorp Alaska highlighted Milne Point production in a Feb. 24 press release, and said it was on track to double production at the field.
Hilcorp said Milne Point production reached 34,000 bpd in late January, the highest production since May 2008. AOGCC data reports volumes by month so the 31,729 bpd from its data is the average for January.
Hilcorp said when it took over as Milne Point operator in November 2014 the field was averaging 18,400 bpd - it expects to reach 40,000 bpd at Milne by the end of 2020.
Jason Rebrook, president of Hilcorp Energy Co., called the production increase at Milne “an important milestone for the state of Alaska and Hilcorp. By empowering our employees closest to the wellhead, driving efficiencies, and innovating, we’re increasing production at Milne Point and putting more oil in TAPS. Our goal is to apply these successes at Prudhoe Bay and beyond,” he said.
Hilcorp said that since 2014 it and fellow working interest owner BP have invested more than $700 million at Milne, and Hilcorp has drilled 60 wells with another 29 planned for this year.
At Moose Pad, targeting viscous oil, Hilcorp and BP invested more than $270 million. That 14-acre pad began producing in April 2019 and can handle 85,000 barrels of fluid per day. Hilcorp said there are currently 10 producing wells at Moose Pad.
Hilcorp announced the acquisition of all of BP’s Alaska upstream and midstream interests in August for $5.6 billion, including interests in Hilcorp-operated Milne Point, ExxonMobil-operated Point Thomson and Prudhoe Bay, where BP Exploration (Alaska) is the operator. Hilcorp said the transaction is expected to close in the second quarter, pending regulatory approval.
Month over month increases The largest month-over-month volume increase was at the BP-operated Prudhoe Bay field, the Slope’s largest, which averaged 280,004 bpd of combined crude oil and NGL production in January, up 0.9%, 2,603 bpd, from a December average of 277,402 bpd, but down 1.6% from a January 2019 average of 284,588 bpd.
Prudhoe crude averaged 223,474 bpd, down 0.1%, 305 bpd, from a December average of 223,779 bpd, and down 3.8% from a January 2019 average of 232,329 bpd. NGL production at Prudhoe averaged 56,530 bpd in January, up 5.4%, 2,908 bpd, from a December average of 53,623 bpd, and up 8.2% from a January 2019 average of 52,259 bpd.
In addition to the primary reservoir, production volumes from Prudhoe include Aurora, Borealis, Lisburne, Midnight Sun, Niakuk, Polaris, Point McIntyre, Put River, Raven and Schrader Bluff.
The ConocoPhillips Alaska-operated Kuparuk River field averaged 104,716 bpd in January, up 1.8%, 1,891 bpd, from a December average of 102,825 bpd, but down 1.2% from a January 2019 average of 105,984 bpd.
In addition to the main Kuparuk pool, Kuparuk produces from satellites at Meltwater, Tabasco and Tarn, and from West Sak.
Eni’s Oooguruk field averaged 9,173 bpd in January, up 12.3%, 1,002 bpd, from a December average of 8,170, but down 1.8% from a January 2019 average of 9,336 bpd.
Badami, operated by Savant Alaska, a Glacier Oil & Gas company, averaged 1,410 bpd in January, up 4.3%, 58 bpd, from a December average of 1,351 bpd, but down 39.3% from a January 2019 average of 2,323 bpd.
Month-over-month declines All other North Slope fields had month-over-month production declines.
The largest drop was at ConocoPhillips’ Greater Mooses Tooth in the National Petroleum Reserve-Alaska, which averaged 5,264 bpd in January, down 16.4%, 1,033 bpd, from a December average of 6,297 bpd and down 56.4% from a January 2019 average of 12,077 bpd.
ConocoPhillips’ Colville River averaged 53,984 bpd in January, down 1.7%, 957 bpd, from a December average of 54,941 bpd, but up 0.9% from a January 2019 average of 53,527 bpd.
In addition to oil from the main Alpine pool, Colville production includes satellite production from Fiord, Nanuq and Qannik.
Hilcorp-operated Endicott averaged 7,109 bpd combined crude and NGL production in January, down 4.5%, 338 bpd, from a December average of 7,446 bpd, and down 5.5% from a January 2019 average of 7,518 bpd. Endicott averaged 6,211 bpd of crude, down 4.1%, 263 bpd, from a December average of 6,474 bpd, and down 5.7% from a January 2019 average of 6,583 bpd. Endicott NGL production averaged 898 bpd in January, down 7.7%, 75 bpd, from a December average of 972 bpd, and down 4% from a January 2019 average of 935 bpd.
Eni’s Nikaitchuq field averaged 20,265 bpd in January, down 1.5%, 298 bpd, from a December average of 20,564 bpd, but up 10.3% from a January 2019 average of 18,375 bpd.
The ExxonMobil Production-operated Point Thomson field averaged 5,292 bpd in January, down 3.6% from a December average of 5,491 bpd, and down 44.2% from a January 2019 average of 9,490 bpd.
The Hilcorp-operated Northstar field averaged 10,271 bpd combined crude and NGL production in January, down 0.3%, 32 bpd, from a December average of 10,304 bpd and down 13.6% from a January 2019 average of 11,890 bpd. Crude production from Northstar averaged 6,929 bpd in January, down 3.9%, 282 bpd, from a December average of 7,211 bpd, and down 21% from a January 2019 average of 8,768 bpd. NGL production averaged 3,342 bpd in January, up 8.1%, 249 bpd, from a December average of 3,093, and up 7.1% from a January 2019 average of 3,122 bpd.
NGL production at Northstar accounts for 32.5% of that field’s production, the most of any of the three Slope fields producing NGLs. NGLs were 20.1% of Prudhoe production in January, and 12.6% of Endicott production.
Cook Inlet down 1% Cook Inlet production averaged 14,003 bpd in January, down 1%, 142 bpd, from a December average of 14,145 bpd, and down 7% from a January 2019 average of 15,048 bpd.
Hilcorp’s Beaver Creek averaged 222 bpd in January, down 12.3%, 24 bpd, from a December average of 198 bpd and down 53.8% from a January 2019 average of 482 bpd.
Granite Creek, also a Hilcorp field, averaged 3,308 bpd in January, up 0.1%, 2 bpd, from a December average of 3,306 bpd and up 23.7% from a January 2019 average of 2,674 bpd.
BlueCrest’s Hansen field, the Cosmopolitan project, averaged 1,073 bpd in January, down 9.1%, 108 bpd, from a December average of 1,181 bpd, and down 24.7% from a January 2019 average of 1,425 bpd.
Hilcorp’s McArthur River field, Cook Inlet’s largest, averaged 4,447 bpd in January, up 0.8%, 33 bpd, from a December average of 4,414 bpd, but down 13.7% from a January 2019 average of 5,151 bpd.
Middle Ground Shoal, also a Hilcorp field, averaged 1,231 bpd in January, down 2.5%, 32 bpd, from a December average of 1,263 bpd and down 15% from a January 2019 average of 1,449 bpd.
Redoubt Shoal, operated by Cook Inlet Energy, a Glacier Oil & Gas company, averaged 1,237 bpd in January, down 6.3%, 83 bpd, from a December average of 1,320 bpd, but up 26% from a January 2019 average of 981 bpd.
Hilcorp’s Swanson River field averaged 770 bpd in January, up 4.5%, 33 bpd, from a December average of 737 bpd, but down 26.9% from a January 2019 average of 1,053 bpd.
Hilcorp’s Trading Bay averaged 1,345 bpd in January, up 2.8%, 37 bpd, from a December average of 1,309 bpd, but down 2.7% from a January 2019 average of 1,382 bpd.
West McArthur River, operated by Glacier’s CIE, averaged 368 bpd in January, down 11.8%, 49 bpd, from a December average of 417 bpd and down 18.4% from a January 2019 average of 451 bpd.
ANS crude oil production peaked in 1988 at 2.1 million bpd; Cook Inlet crude oil production peaked in 1970 at more than 227,000 bpd.
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