Exxon asks for accelerated permitting schedule for Point Thomson

Point Thomson production start-up slated for late 2006

The environmental report for the Point Thomson unit gas cycling project that was sent to state and federal agencies this week by unit operator ExxonMobil called for development of the Point Thomson field first as a gas cycling project with the possibility of Brookian oil and/or gas sales following at an “unspecified future date.” The Point Thomson sands reservoir is located both onshore and offshore of Lions Lagoon.

Under the proposed development plan, “3-phase full well stream production gathered from two remote well pads” will be sent to a central processing facility where the condensate will be separated and stabilized to meet pipeline sales specifications, the report said.

The remaining gas would then be compressed and re-injected at an adjacent central well pad.

Exxon’s development plans include a sales pipeline to transport hydrocarbon condensate through a tie-in with the existing Badami sales pipeline located about 22 miles west of the proposed Point Thomson central processing facility. From there, the liquid will be transported through the existing Badami and Endicott common carrier pipelines to the trans-Alaska oil pipeline.

“The potential for gas sales from Pont Thomson “could be realized with the completion of a gas pipeline from the Lower 48,” the report said, although it noted that Point Thomson’s role in a North Slope gas marketing project has not been defined.

“The overall viability of a gas sales pipeline must first be confirmed. Prudhoe Bay and Point Thomson unit owners must also study the costs and benefits associated with early gas sales versus gas cycling (selling gas at a later date) at Point Thomson,” the report said.

There are no plans for a road to connect Point Thomson with Badami or any other oil field facilities to the west.

Timetable for construction, drilling:

1.) Winter of 2004/2005: build sea ice road from Endicott to Point Thomson and mobilize heavy equipment, construction camps and personnel to project site

2.) Early 2005: develop gravel mine

3.) Winter 2005: construction of gravel field facilities, including well and CPF pads, dock, airstrip and infield roads

4.) By August 2005: all processing modules, early power equipment, grind and inject modules and other necessary equipment and infrastructure will either be trucked on sea ice or barged to the project site

5.) Summer 2005: pads, roads, the dock and airstrip re-graded and shaped; nearshore dredging activities off the dockhead

6.) Winter 2005/2006: development drilling, pipeline construction and civil construction of the CPF modules

7.) End of 2006: project start-up

The major working interest owners at the Point Thomson unit are ExxonMobil, BP and Chevron.

Phillips submits applications for Colville River satellite development, CD South (Nanuq)

Phillips Alaska Inc. submitted an application today to state agencies and the U.S. Army Corps of Engineers for the development of Colville Delta South, an Alpine satellite.

Hydrocarbons from the satellite would be processed at Philips Alpine unit.

CD South, commonly known as “Nanuq,” is approximately 4 miles south of the Alpine CD-1 drilling site. Several exploration wells have been drilled near the proposed project, including the Nanuk in 1996 and the Nanuq 3 last winter.

The CD South project includes construction of a gravel pad to support drilling and production facilities that will connect to Alpine’s central processing facility by a 3.8 mile all weather gravel road. It will require approximately 358,000 cubic yards of gravel over a 38-acre area.

The proposed pipelines connecting the CD South satellite to the Alpine CPF will consist of a 20-inch diameter three-phase production line, an 8-inch diameter gas miscible injection line, a 10-inch water line and a 4-inch gas lift line.

Approximately 40 wells will be drilled from the new pad on a continual basis for approximately 40 months.

Phillips plans to begin construction of CD South’s drilling pad and access road in February 2002 with start-up of production in the third quarter of 2003.

Phillips submits applications for Colville River satellite development, CD North (Fiord)

Phillips Alaska Inc. submitted an application today to the state Division of Oil and Gas for the development of Colville Delta North, an Alpine satellite. Hydrocarbons from the satellite would be processed at Philips Alpine unit.

CD North, generally known as the Fiord prospect, is approximately 8 miles north of the Alpine CD-1 drilling site. The proposed project would consist of a standalone drilling pad with a dedicated 6,000 foot, gravel airstrip. No access road is proposed for the development.

The project would require approximately 462,000 cubic yards of gravel over approximately 37.3 acres.

Approximately 40 wells will be drilled from the new pad on a continual basis for approximately 40 months.

The proposed pipelines connecting the CD North satellite to the Alpine CPF will consist of a 20-inch diameter three-phase production line, an 8-inch diameter gas miscible injection line and a 10-inch water line.

Phillips hopes to begin construction of CD North’s drilling pad and airstrip in February 2002 with start-up of production in the third quarter of 2003.