ConocoPhillips applies for water line for GMT1

KRISTEN NELSON

Petroleum News

ConocoPhillips Alaska has not made a final investment decision for its Greater Mooses Tooth 1 project in the National Petroleum Reserve-Alaska, but it has applied to the Alaska Department of Natural Resources, Division of Oil and Gas, for a waterline easement for the project.

ConocoPhillips said in its application that the right-of-way easement would be between Colville Delta 4 North and the Alpine Central Facility for a 14-inch water injection line on 400 new vertical support members.

The company said it would install the new VSMs adjacent to existing VSMs and pipelines between CD4N and the Alpine Central Facility. The company is also requesting an easement over the Nigliq Channel to install the 14-inch water injection line, which will be added to existing VSMs.

The company said the new water injection pipeline and new support structures would support the Greater Mooses Tooth 1 development project.

Construction and installation of the VSMs and pipeline are planned for the winter months using ice road access to the pipeline right of way, the company said.

The application slates the beginning of construction for January 2016, with completion by December 2018.

ConocoPhillips said the new set of pipeline VSMs is required because there is insufficient capacity to transport water to GMT1 in existing pipelines. The pipe rack will have space for an 8-inch future pipeline as well as a 24-inch future pipeline, the company said.

ConocoPhillips Alaska said last January that it was slowing the pace of investment on GMT1, based on “permitting delays and requirements” and the price of oil.

GMT1 would primarily develop oil reservoirs in the region immediately west of the Alpine field.

When it issued its record of decision for the proposed GMT1 development in February, the federal Bureau of Land Management, the NPR-A land manager, said issuance of the ROD opens “the way for the first production of oil and gas from federal lands” in the 23 million acre NPR-A.

Mooses Tooth is based on exploration work by ConocoPhillips and its predecessors in NPR-A. The federal Mooses Tooth unit was formed in 2008, the Bears Tooth unit, farther west in NPR-A, in 2009.

In a project description ConocoPhillips said GMT1 will be connected by a 7.8-mile gravel road and pipelines to CD5 and the Alpine processing facilities, which will handle oil from GMT1.

The cost to develop will be some $900 million and estimated peak production will be 30,000 barrels of oil per day.