Cosmopolitan unit 2021 POD approved

Steve Sutherlin

Petroleum News

The Alaska Department of Natural Resources, Division of Oil and Gas approved the BlueCrest Alaska Operating LLC 2021 Cosmopolitan unit plan of development, according to an Oct. 21 letter issued by the division.

In its 2021 POD, BlueCrest plans to maintain production through well maintenance, continue planning for future development and resume drilling during the 2021 POD period if oil markets improve, the division noted.

In its 2020 POD, the company had listed plans to drill one or two Trident multilateral wells, however no new wells were drilled because of the Covid-19 pandemic and collapse in oil markets, the division said, adding that production was maintained, and planning for future development continued.

The division said that plans set forth in the 2021 POD protect the public interest in diligent development of state resources, by maintaining production with the possibility of increased production if oil markets support further expenditures.

“The 2021 POD therefore is necessary and advisable to protect the public interest,” the division said, adding, “Due to current conditions, and in keeping with the State’s recognition of other operator’s actions under similar conditions, the drilling of additional wells at this time would be imprudent and not in the best interest of all parties.”

The division said that “unique circumstances at this time” heavily influenced its decision.

“Approval of a plan of development without firm drilling commitments at this time is not a guarantee future similar plans will be approved,” it said.

- STEVE SUTHERLIN