Hilcorp's Nikaitchuq 18th POD approved; production increasing
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Kay Cashman Petroleum News
On Aug. 26, the Alaska Department of Natural Resources' Division of Oil and Gas sent Hilcorp Alaska's senior landman, Jamie Wilson, notice that the company's proposed 18th plan of development, or POD, for the North Slope Nikaitchuq Unit has been approved.
The 18th POD period for the offshore unit in the coastal waters of the Beaufort Sea north of Oliktok Point runs from Oct. 1, 2025, through Sept. 30, 2026.
Since assuming operatorship of the unit in November 2024, Hilcorp has increased average daily production from approximately 13,200 barrels of oil per day to 17,300 bpd through work executed under the 17th POD.
In that POD former operator Eni had committed to drilling three new wells and one lateral from the Spy Island Drill Site. In addition Eni also committed to completing all necessary maintenance and inspections, finalizing fabrication of the new Oliktok Point Pad control room, and undergoing a stage gate review for the Electrical Power Sharing, or EPS, project aimed at connecting the Nikaitchuq and Oooguruk units.
However, during the 17th POD period, Hilcorp acquired the Nikaitchuq unit from Eni U.S. Operating Co. and was approved as the unit operator.
Following the transition, Hilcorp indicated it would need additional time to review and evaluate future drilling opportunities.
Nevertheless, Hilcorp completed multiple workovers during the 17th POD period, including replacing failed ESPs in six wells and beginning ESP work on SP23. Hilcorp also conducted tubing diagnostics, a fluid movement log per EPA requirements, and AOGCC-approved mechanical integrity tests on two wells.
In addition, Hilcorp carried out routine facility maintenance and planned inspections.
Unit history The Nikaitchuq Unit was formed effective April 29, 2004. The Schrader Bluff Participating Area was approved effective Jan. 1, 2011, and commenced sustained production from the Cretaceous age Schrader Bluff formation on Jan. 31, 2011.
Hilcorp acquired the Nikaitchuq Unit and was approved as operator on Nov. 1, 2024.
The unit contains 34 producing wells, 30 additional producing lateral wellbores, 25 injectors, three water source wells, and two disposal wells.
Nikaitchuq production comes from two drilling locations, the Spy Island Drill Site, or SID, and the Oliktok Point Pad, or OPP.
Full development of the OA sands will consist of 33 production wells and 26 injection wells, with potential for more wells.
One onshore facility located at the OPP handles all production.
Cumulative oil production from the Nikaitchuq Unit was approximately 88.9 million barrels through June 30, 2025.
18th POD work Hilcorp is evaluating the Schrader Bluff N sands for development potential and may drill anywhere from zero to six wells during the 18th POD period depending on its evaluation. Hilcorp has requested additional time for this analysis prior to making a commitment and will keep the division informed on their decision to drill.
And yet, Hilcorp will manage and maintain the previous production decline and carry out the following surface facility operations:
* Service rotating equipment, replacement of worn piping and valves, and inspection or testing of safety systems;
* Continue routine maintenance from the 17th POD on the four power generation turbines, and the two gas compressors at the OPP;
* Evaluate drilling and well expansion opportunities for the SID site and the OPP; and
* Evaluate additional VFD and transformer installation for new wells, jet pump capability for wells, and polymer injection for the SID site and the OPP.
Hilcorp provided a technical review to the division on Aug. 12, 2025.
In his decision division Director Derek Nottingham said that the plans set forth in the 18th POD protect the public interest by maintaining production, evaluating the Schrader Bluff N sands for development potential and carrying out various surface facility operations.
The approval is only for a general plan of development. Specific field operations require separate approval.
The 19th POD is due July 2, 2026, 90 days before the 18th POD expires.
--KAY CASHMAN
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