AVCG tells state to dissolve Sak River unit; will focus on Colville prospects

EnCana plugs and abandons McCovey

EnCana Oil & Gas (USA) notified the U.S. Department of the Interior Minerals Management Service Feb. 2 that it was plugging and abandoning the well bore at its McCovey No. 1 well north of Prudhoe Bay in the Beaufort Sea. No details were available, but the company confirmed in writing Feb. 3 the verbal notification from the day before of the permanent abandonment. The well was not sidetracked. As of press time there was no word from the agencies as to whether they still expect a second plan of exploration for next season. The McCovey prospect was being drilled from the SDC — the steel drilling caisson — which was towed to the site in July. ConocoPhillips Alaska Inc. and ChevronTexaco are partners at McCovey, with EnCana operating.

New DGC director named; move orders expected next week

Bill Jeffress joined the Division of Governmental Coordination as its new director Feb. 3. DGC said Jeffress comes to state government with extensive experience in the private sector, specifically the mining and timber industries. He spent several years working in the Nevada mining industry and in 1992 moved to Alaska to work on the Fort Knox and True North Mines. In addition to working for the private sector, DGC said Jeffress also has experience working with government including work under a cooperative agreement between the state of Nevada and U.S. Environmental Protection Agency, Region IX.

"We do have a new director," and DGC is still in the governor's office, the governor's press secretary, John Manley, told PNA this morning. Manley said DGC "will be moving over to DNR at some point." Executive orders for that move are expected next week, he said.

Gov. Frank Murkowski said in his state-of-the state address Jan. 23 that he planned to make the Department of Natural Resources the lead agency for all state permitting, streamline the Alaska Coastal Management Program and transfer responsibility for that program from the Office of the Governor to DNR, eliminating DGC in the governor's office “in favor of the Department of Natural Resources as the lead agency.”

Tundra open

VECO Operations Inc. has been awarded a five-year contract for operations and engineering support for the Badami oilfield by BP Exploration (Alaska) Inc., BP said in a statement today.

During the initial phase of the contract BP and VECO will design a managed maintenance system for Badami and finalize commercial terms of a long-term contract that will include performance measures and a risk-reward system of compensation, said BP.

This component, to be completed prior to field start-up late this year, is valued at more than $1 million and is expected to provide about 20 jobs.

Long-term support will create about 12 jobs on the North Slope and in Anchorage. The value of this part of the contract, said BP, is more than $3 million per year.

BP holds a 70 percent interest in Badami and is field operator. PetroFina S.A. has a 30 percent interest. The field is 35 miles east of Prudhoe Bay and holds an estimated 120 million barrels of oil.