Point Thomson progress continues as ExxonMobil seeks air permit

On the tundra, and in offices, progress continues toward an elusive goal - first production from Point Thomson.

The latest indication is a preliminary decision by the Alaska Department of Environmental Conservation to approve an “air quality control construction permit” for ExxonMobil Corp., operator of the remote Point Thomson field.

It takes a lot to bring a new oil and gas field into production, and ExxonMobil now appears to be entering the home stretch in its effort to add Point Thomson to the ranks of producing units on Alaska’s prolific North Slope.

Point Thomson is located on state leases about 60 miles east of Prudhoe Bay, next to the Arctic National Wildlife Refuge. The field was discovered in 1977.

ExxonMobil is aiming to start producing 10,000 barrels per day of natural gas condensate from Point Thomson beginning in 2016. Condensate is a form of light crude oil.

ExxonMobil already has drilled a pair of wells at Point Thomson, and is well along on pad construction. A new 22-mile pipeline link to the existing North Slope oil transportation network is done. In coming months, hulking process modules will arrive from South Korea.

In sum, it really does appear the Point Thomson field is headed toward first production, something state officials have long pushed ExxonMobil and its partners to achieve.

The initial production rate is modest, but the hope is it will set the table for much greater oil and gas production from Point Thomson, where the main prize is an estimated 8 trillion cubic feet of gas - a world-class volume.

The air quality permit is among the scores of permits necessary for a new field. It sets limits on pollution that can come from the Point Thomson production facility, the development and operation of which involves equipment such as a drilling rig, engines, turbines, generators, pumps, heaters, incinerators and gas flares.

The requested air permit would actually be a revision of a permit DEC issued previously for Point Thomson.

In a recent public notice, DEC said it is taking public comments until July 24 on its preliminary decision to approve the new air permit for ExxonMobil. The department said it will decide whether to issue or deny the permit once the public comment period closes.

More information on the permit, including a technical analysis report, is available from DEC at http://tinyurl.com/llwyolq.

ExxonMobil’s partners in the Point Thomson field include BP and ConocoPhillips.

- WESLEY LOY