The company had initially hoped to both sanction Nikaitchuq development by the end of this year and begin construction of its first of four potential production pads.
If Kerr-McGee was able to remain on schedule it would have produced oil from its first pad in March or April 2006, setting a record for the shortest time between the discovery of a field and when it went into production.
“I can tell you we are still evaluating Alaska, but do not expect a sanctioning decision this year,” Kerr-McGee spokesman John Christiansen told Petroleum News Nov. 22.
Christiansen declined to say more but he did provide an information sheet handed out by Kerr-McGee as part of a Nov. 15 Bank of America presentation indicating four issues the company was still trying to resolve in Alaska before deciding to proceed with Nikaitchuq development. Those issues were reservoir stimulation, royalty relief from the state of Alaska, and pipeline and processing agreements with North Slope infrastructure owners.
Permitting was also listed but Petroleum News could not find a permit in public records that had not been issued for the project.
At full capacity Nikaitchuq is expected to produce 60,000 barrels of oil per day and small amounts of natural gas through 2026.
Editor’s note: See full story in the Nov. 27 issue of Petroleum News, which will be online at www.PetroleumNews.com this coming Friday at noon.