Glacier applies for operation suspensions

Kristen Nelson

Petroleum News

Glacier Oil and Gas Corp., parent company of Cook Inlet Energy and Savant Alaska, has applied to the Alaska Division of Oil and Gas for suspension of operations and production for its three oil fields in the state.

As previously reported by Petroleum News (see stories in May 24 issue), Glacier is shutting in production from Badami on the North Slope and Redoubt and West McArthur River in Cook Inlet.

In addition to these fields, the company operates the North Fork gas field on the Kenai Peninsula.

May 28 letters from Glacier VP of Operations David Pascal to the division requested a suspension from May 1 through July 15, 2021, for Badami, May 4 through April 30, 2021, for Redoubt and May 17 through April 30, 2021 for West McArthur River. Pascal said the suspension periods coincide with current plans of operations.

“The present global condition of low crude oil prices, combined with a lack of demand, obligates Glacier to act as a prudent operator and suspend operations until demand and market price have sufficiently recovered to justify the resumption of production operations,” Pascal said. He said the company’s intent is to re-start operations. During the term of the suspension of operations “a reduced complement of employees” would monitor the facilities in warm standby status.

At Badami, Pascal said, employees would remain onsite both to monitor the Badami facility and to operate the Badami Pipeline which delivers production from Point Thomson to Endicott. He said the private airstrip at Badami would be maintained for continued access.

Pascal said that if market conditions improve before the end of the suspension, Glacier would coordinate with the division for submission of updated plans of development.

The applications each include lists of activities required for suspension, including shutting in and freeze protecting producing wells as applicable.

At Badami, flowlines “will be evacuated, protected from freeze and corrosion as applicable.”

At Redoubt, which produces from wells on the Osprey Platform, subsea pipelines from the platform will be “purged, cleaned and protected” along with pipelines at the onshore Kustatan Production Facility.

“Cross country pipelines will be purged, cleaned and protected” at the West McArthur River.

At all the facilities, at least portions of the camps will be kept open to house personnel.

- KRISTEN NELSON