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Oil patch insider: Doyon Rig 26 down; ConocoPhillips NPR-A drilling continues w Rig 142
Kay Cashman Petroleum News
On Jan. 23 at 4:40 p.m. during a rig move along a gravel road about 6.5 miles northwest of the village of Nuiqsut (GPS coordinates: 70.303724, -151.145293) on Alaska's western North Slope, Doyon Drilling Rig 26. a self-propelled drilling module, left the road and toppled onto the tundra near "K pad," which is a gravel pad owned by Kuukpik Corp. and leased by ConocoPhillips Alaska.
Initial response actions were taken to address a fire onboard Rig 26. The site was released by the on-scene fire chief the next day on Jan. 24 at 3:45 p.m.
The 9.5-million-pound rig known as "The Beast" was going to be used in ConocoPhillips Alaska Inc.'s winter exploration program in the vicinity of its $8.5 billion to $9 billion Willow development under construction in the National Petroleum Reserve-Alaska where operator CPAI plans to drill four exploration wells this winter.
In recent court filings the company says it will use Doyon Rig 142 instead and still plans to drill the four wells.
A 3D seismic survey across some 300 square miles of NPR-A southwest of the village is also part of CPAI's exploration plans this winter.
Nov. 6 reveals ConocoPhillips chief executive Ryan Lance said in a Nov. 6 third quarter earnings report that in 2026 the company will have "a bigger exploration program than we've had in Alaska in a number of years," the specifics of which have since been revealed as a major oil exploration campaign in the NPR-A that includes the four exploratory wells.
Lance also said Nov. 6 that operator CPAI is expecting first oil at its North Slope Willow project to be sooner than forecast -- "early" 2029 versus later in that year.
Willow is scheduled to produce 180,000 barrels per day of oil at peak rates.
Another reveal of the Nov. 6 third quarter earnings report was a revised estimate for Willow project costs: They will be approximately $1 billion more than the company's late 2023 final investment decision estimate.
The projected cost range for Willow is now $8.5 billion to $9 billion, up from $7 billion to $7.5 billion.
Lance blamed the overruns on "higher-than-expected general inflation and localized North Slope cost escalation".
Unified Command structure In a ConocoPhillips Alaska statement following the rig toppling incident, the company said: "The incident involving Doyon Drilling Rig 26 has transitioned from an initial emergency response to an environmental impact assessment and mitigation effort. The two individuals who were on the rig at the time of the incident and six other initial responders were treated at nearby clinics and have all been released. Traffic flow has resumed and there continues to be no threat to local infrastructure or communities.
"The owner and operator of the rig, Doyon Drilling, is leading response and recovery efforts under a Unified Command structure including representatives from the State of Alaska, the federal government and the North Slope Borough."
Spill report According to a Jan. 25 situation report from the Alaska Department of Environmental Conservation, Division of Spill Prevention and Response, "the Spill Prevention, Control, and Countermeasure Plan (SPCC) for Rig 26 the maximum potential product on board was 8,400 gallons of diesel, 1,930 gallons hydraulic oil, and 85 gallons of ethylene glycol. Because diesel was used to fuel the rig's mobilization, it is estimated that a significant portion of the diesel had been consumed prior to Rig 26 leaving the roadway. Fuel volumes in the diesel tanks were measured approximately 30 minutes prior to the incident indicating that approximately 4,000 gallons were on board. Evidence of a diesel spill has been confirmed by emergency responders; however, further assessments are in progress."
In regard to resources at risk or affected, the Situation Report said: "The drilling module landed on tundra covered in 12 to 24 inches of snow. The closest oil and gas infrastructure is located approximately 50 feet away and was not impacted. Based on available maps, the site is less than 500 feet from a tributary to the Nechelik Channel of the Colville River. The spill area lies within critical habitat for denning and non-denning polar bears and habitat for caribou, Arctic fox, muskox, and ptarmigan, but no impacts to wildlife have been reported."
According to Kimberley Maher, northern region manager for the Department of Environmental Conservation, as of Monday, Jan. 26 immediate risk to responders is "big chunks of metal that could fall off" the downed rig.
"Over the weekend I was told it is continuing to settle," she said.
Responders on site described a visible diesel pool but the ground and a nearby waterway are frozen, limiting any pollution, Maher said, adding that a few caribou were seen in the area before the rig went down but no wildlife has been seen since.
--KAY CASHMAN
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