Ice road work begins for some projects in spite of low oil prices

Kristen Nelson

Some North Slope Alaska projects are going ahead, in spite of low oil prices and budget cutbacks. In the first week of January, North Slope ice road and/or ice pad construction had begun for three exploration wells: V-200, Red Dog and Meltwater South. Work had also begun on the pipeline route/service road for the Alpine project. That ice road, Department of Natural Resources Division of Oil and Gas officials told PNA, will be divided with a berm so that supplies can be moved on one side and pipeline construction on the other side.

ARCO Alaska Inc. spokesman Ronnie Chappell told PNA Jan. 8 that the company’s capital program has not been approved by the board of directors, so plans are preliminary at this time.

“We hope to drill five to six wells, which is somewhat less than we’ve drilled in recent years,” Chappell said. That reduction, he said, is due to record low oil prices.

Chappell said that plans are still being determined with partners, but that “there are some wells that we are more confident that we will be drilling.” Those include the Meltwater (south of Tarn) on 100 percent ARCO acreage. ARCO will also be participating in some BP Exploration (Alaska) Inc. operated wells.

“One is Red Dog where we have the largest working interest,” Chappell said. BP is operating that well because it’s near Badami, he said. BP told PNA in December that the Red Dog exploration well would be drilled. It is to be drilled from an onshore location between the Badami and Point Thomson units to a bottomhole location offshore. Chappell said that ARCO will also be participating in the V-200 Schrader Bluff well on the western edge of Prudhoe Bay. BP obtained a drilling permit for the V-200 on Dec. 30.

Division of Oil and Gas officials also told PNA that work had begun on the shallow water crossing of the Kuparuk River.