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RCA OKs Badami pipeline transfer Says certificates for oil and gas lines from the Badami field can transfer from BP to Nutaaq, owned by Savant, ASRC Exploration Alan Bailey Petroleum News
The Regulatory Commission of Alaska, or RCA, has approved the transfer of the certificates of public convenience and necessity for the Badami Pipeline System from BP Transportation (Alaska) Inc. to Nutaaq Pipeline LLC. Nutaaq is owned by Savant Alaska and ASRC Exploration, owners of the Badami oil field on Alaska’s North Slope.
The pipeline system consists of the Badami oil and gas pipelines. The 12-inch oil line, which delivers oil produced from the Badami field, runs west from the field’s processing facility to a tie-in with the Endicott pipeline. The gas line, a 6-inch, high pressure line, parallels the oil line and terminates on the main production island for the Endicott field. The gas line supports bi-directional flow and can be used for multiple purposes, including the transport of produced gas and the transport of diesel fuel, according to information presented in the RCA order approving the certificate transfer.
Acquired 2012 Savant and ASRC Exploration acquired the Badami field from BP in January 2012, with a separate agreement for the transfer of ownership of the Badami Pipeline System to Nutaaq. However, BP has retained responsibility for the eventual decommissioning, restoration and reclamation obligations for the pipelines. The Badami field lies to the east of the central North Slope,
Savant, now the Badami field operator, has been providing “complete oversight” of the pipeline system since the signing of the transfer of ownership agreement, RCA says. But, with the pipelines being regulated common carrier lines, RCA approval of the transfers of the pipeline certificates is required.
RCA says that is satisfied that both Savant and ASRC Exploration have the experience, technical knowledge, managerial ability and financial capability to own and operate the pipeline system.
Spare capacity With oil production from Badami substantially lower than BP, the initial field operator, had originally anticipated, throughput in the Badami oil pipeline is well below design capacity. However, a pipeline from the Point Thomson field, under development by ExxonMobil to the east of Badami, is expected to hook up with the Badami line for the delivery of natural gas condensate from Point Thomson to the trans-Alaska oil pipeline. Savant and ASRC Exploration have said that the availability of spare capacity on the Badami pipeline will avoid the need to extend the Point Thomson export pipeline all the way to the central North Slope.
In its order approving transfer of the pipeline certificates, RCA says that the pipeline owners plan to continue using the current pipeline tariff unless or until a user of the pipeline complains about the rates. However, the commission requires that Nutaaq files a tariff in its own name for the two pipelines in the pipeline system. Currently Savant and ASRC Exploration are the only users of the pipelines.
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