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PBU Western Satellites 2026 plan of development approved by State
Kay Cashman Petroleum News
On Dec. 1 the Alaska Department of Natural Resources' Division of Oil and Gas sent division landman Michael Schoetz of Hilcorp North Slope approval for the Prudhoe Bay Unit Western Satellites 2026 plan of development, or POD, for the period of Jan. 1 through Dec. 31. The approval was sent by certified mail.
The proposed 2026 Prudhoe Bay Unit Western Satellites Participating Areas POD was sent to the Division on Oct. 1, 2025, and Schoetz was notified on Oct. 10, 2025 that the POD submittal was deemed complete.
Hilcorp provided a technical review to the Division on Nov. 13, 2025.
The PBU Western Satellites area consists of five participating areas, or PAs: Aurora, Borealis, Midnight Sun, Orion, and Polaris. The Aurora, Borealis, and Midnight Sun PAs produce primarily from the Kuparuk River formation, while the Orion and Polaris PAs produce oil with higher viscosity from the Schrader Bluff formation.
The Western Satellites PAs produced approximately 42.7 billion cubic feet (BCF) of gas and 13,442 thousand barrels (Mbbl) of oil between Oct. 1, 2024, and Sept. 30, 2025. Over that time, the daily oil production rate was 36,828 BOPD. This represents a 13% decrease in overall oil production from the previous 12 months.
2025 POD In the submitted 2025 POD period, Hilcorp committed to drilling seven wells within the Western Satellites Area. Another eight wells may be drilled depending on rig availability and priority of wells within other areas of the PBU.
In addition to drilling and wellwork, facility projects for the 2025 POD period included
completion of the EWE LDF twin pipeline phase 1 project, GC2 inter-stage vessel installation, GC2 LPS compressor bundle upgrade and gas conditioning upgrades, and GC2 A Bank vessel internal upgrades.
During the 2025 POD period, Hilcorp completed all its proposed facility projects, including the EWE LDF twin pipeline phase 1 project. Hilcorp drilled four wells with an additional five pending execution at the time of the 2026 POD submittal.
The additional eight wells that Hilcorp stated may be drilled in 2025 were not due
to rig availability.
Additionally, Hilcorp performed one recomplete operation in the 2025 POD period.
2026 POD During the 2026 POD, Hilcorp will perform the following activities:
' Drill 3 wells in the Orion PA;
' Drill 2 wells in the Polaris PA;
' Perform 3 workovers;
' Install GC-2 Inter-Stage vessels; and
' Upgrade GC-2 LPS Compressor Bundle and Gas Conditioning systems.
Finding and decision When considering a POD, the Division must consider the criteria in 11 AAC 83.303(a) and (b).
Accordingly, the Division considered the public interest, conservation of natural resources, prevention of economic and physical waste, protection of all interested parties including the state, environmental costs and benefits, geological and engineering characteristics of reservoirs or potential hydrocarbon accumulations, prior exploration activities, plans for exploration or development, economic costs and benefits to the state, and any other relevant factors, including mitigation measures. 11 AAC 83.303(a), (b).
Based upon the Division's prior POD approvals and analysis of the 11 AAC 83.303(b) criteria, the Division found that the 2026 POD protects the public interest, promotes conservation, prevents waste, and protects the parties' interests.
The approval is only for a general plan of development. Specific field operations require separate approval under 11 AAC 83.346, Unit Plan of Operations.
The 2026 PBU POD approval was signed by Derek Nottingham, director of the Division of Oil and Gas.
Under 11 AAC 83.343, the 2027 POD is due Oct. 1, 2026, 90 days before the 2026 POD expires.
Questions regarding this decision should be referred to Heather Beat with the Division at 907 269-8792 or via email at [email protected].
-KAY CASHMAN
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