BP awards Parker Drilling contract to design rig for Liberty project; Pearce confirmed by Congress

Parker Drilling has been selected to do the conceptual design of the drilling rig BP will use for its Liberty project offshore Alaska, Houston-based Parker said in early August. If the rig is built, it is expected to be the largest in the world and drill the longest wells in the world.

BP is hoping to tap the Beaufort Sea oil prospect from shore vs. building an island, a proposal that has met with favor from the North Slope Borough, which is opposed to oil and gas development outside the Barrier Islands.

But to reach the Liberty outer continental shelf prospect a specially designed rig will be needed to drill extended reach wells out as far as 8.3 miles — something that has never been done before. (See related story in sidebar to page 1 Qannik story.)

BP has been responsible for a number of worldwide extended reach drilling records at Wytch Farm in the United Kingdom, with wells ranging from 27,240 feet to 37,001 feet of measured depth (length along the pipe), and horizontal displacements (length along the surface) from 25,105 feet to 35,196 feet.

BP has used extended reach drilling in Alaska — at Niakuk and Milne Point — but the Liberty wells will go out much farther, twice as far as BP’s Niakuk Alaska record 20,000-foot ERD well, BP’s Liberty development manager Daryl Luoma told Petroleum News in October.

Although borough and federal officials have been told the horizontal displacement on the Liberty wells will be as long as eight miles, in its second quarter earnings report on Aug. 1 Parker said, “Some of these wells are projected to extend to nominal measured depths in excess of 40,000 feet,” which translates into 7.6 miles along the entire pipe (measured depth).

Luoma clarified it for Petroleum News. He said lateral departures could be to 44,000 feet (8.3 miles) with measured depths approximately 48,000 feet, meaning the wells will go out from shore as far as 8.3 miles and then down another 4,000 feet.

In a pre-application meeting for Liberty in late February, BP representatives told North Slope Borough officials they were looking at putting the Liberty drilling pad at either Point Brower or on a spit near the mouth of the Kadleroshilik River. Point Brower is approximately five miles from the Liberty discovery well; the mouth of the Kadleroshilik River is about six miles from the same well.

BP drilled the Liberty discovery well in 1997. Recoverable oil is estimated at 120 million barrels.

Pearce confirmed as federal coordinator

“With a background in state and federal policy, Drue Peace is well qualified to oversee development of a major federal project such as the Alaska natural gas pipeline,” said Sen. Pete Domenici, N.M., chairman of the Senate Committee on Energy and Natural Resources. “The pipeline is an important project not only to Alaska, but to the Lower 48 states which are today so dependent on natural gas. Having Drue Pearce in this position will help ensure that the project is built and opened without necessary delays.”

Pearce has served in the Alaska House and Senate, where she served as president.

Chevron sign unveiled on Anchorage HQ

Chevron held a special outdoor event Aug. 10 to commemorate the one-year anniversary of the company’s merger with Unocal. Employees and their families joined invited guests and members of the public to enjoy live music, food, games and more on the Delaney Parkstrip in downtown Anchorage.

Making a special appearance at the event were Anchorage Mayor Mark Begich, “Hank Hot Rod,” a favorite in the series of Chevron’s collectible toy cars, and comedian and former Miss Anchorage Alice Welling. Several Chevron North America Exploration and Production Co. executives were also in attendance — Scott Davis, vice president; John Zager, Alaska general manager; Dick Filgate, operational excellence general manager; and Jeff Smith, drilling manager.

Anchorage Mayor Mark Begich congratulated the company and said, “Chevron is a great corporate partner for us in this city, but also a great community partner — ‘here’s to many more years in Alaska.’”

After presenting a $5,000 contribution check to Covenant House Alaska, the event culminated with a countdown to the rooftop unveiling of the new Chevron sign, which appeared amid a cloud of smoke while the 275 attendees cheered and watched in excitement.

San Ramon, Calif.-based Chevron Corp. has more than 53,000 employees, and its subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products.