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Providing coverage of Alaska and northern Canada's oil and gas industry
June 2020

Vol. 25, No.23 Week of June 07, 2020

North Slope production for April down 3%

Average for month 498,422 bpd, down 14,498 bpd; largest volume drop at Prudhoe; largest volume increase at Hilcorp’s Milne Point

Kristen Nelson

Petroleum News

Alaska North Slope production averaged 498,422 barrels per day in April, 90% crude oil (448,849 bpd) and 10% natural gas liquids (49,573 bpd). This is a decrease of 2.8%, 14,498 bpd (7,475 bpd of crude and 7,022 bpd of NGLs) from a March average of 512,920 bpd (456,325 bpd of crude and 56,595 bpd of NLGs) and a drop of 3.3% from an April 2019 average of 515,292 bpd (460,075 bpd of crude and 55,216 bpd of NGLs.)

This production data is from the Alaska Oil and Gas Conservation Commission, which provides volumes by field and well on a month delay basis.

Alyeska Pipeline Service Co., operator of the trans-Alaska oil pipeline, began a proration on April 24 with a 10% cut to production. Data from the Alaska Department of Revenue’s Tax Division show a dip in daily North Slope production beginning on April 24, with production dropping from more than 500,000 bpd most days in April to 476,758 bpd April 24, reaching 445,251 bpd on April 30. (The production cut increased to 15% on May 8, then dropped to 5% on May 15, and was ended May 21.) Alyeska prorates TAPS volumes based on factors including incoming flow rates, current and projected inventory and scheduled tanker movements, the company said in a May 21 press release announcing the end of the current proration.

Point Thomson, Milne up

Two North Slope fields, the Hilcorp Alaska operated Milne Point and the ExxonMobil Alaska Production operated Point Thomson field, showed substantial month-over-month production increases, while Badami, operated by Savant Alaska, a Glacier Oil & Gas company, and Endicott, operated by Hilcorp Alaska, were each up by smaller amounts.

Hilcorp Alaska took over as operator at Milne Point in 2014; BP remains a 50% working interest owner at the field, one of BP’s Alaska assets which Hilcorp is in the process of acquiring.

In February Hilcorp said it was on track to double production at Milne, which averaged 18,400 bpd when the company took over as operator in November 2014.

In April, Milne Point averaged 32,794 bpd, up 7.1%, 2,170 bpd, from a March average of 30,624 bpd and up 29.8% from April 2019 when production averaged 25,260 bpd.

April production at Point Thomson averaged 9,278 bpd, up 22.1%, 1,677 bpd, from a March average of 7,601 bpd and up 15.6% from an April 2019 average of 8,027 bpd.

ExxonMobil has had compressor issues at the high-pressure field, resulting in wide production fluctuations. In its most recent plan of development it told the state it was addressing issues with its gas injection equipment, had begun installing upgraded components and expected to receive and install remaining equipment during the 2020-21 plan period.

As noted in the April 19 issue of Petroleum News, two compressor trains are now reported to be operating at the field, with an increase in condensate production expected from approximately 5,000 bpd to 10,000 bpd, the rated facility capacity at the field, with each of the two trains capable of 5,000-6,000 bpd.

Endicott averaged 7,543 bpd in April (6,569 bpd of crude, 87.1%, and 974 bpd of NGLs, 12.9%), up 117 bpd (all NGLs), a 1.6% increase, from a March average of 7,426 bpd (6,569 bpd of crude, 857 bpd of NGLs), and up 2.9% from an April 2019 average of 7,328 bpd (6,443 bpd of crude and 885 bpd of NGLs).

Badami averaged 1,308 bpd in April, up 4.5%, 56 bpd, from a March average of 1,252 bpd, but down 21.2% from an April 2019 average of 1,659 bpd.

Largest drop at Prudhoe

The BP Exploration (Alaska) operated Prudhoe Bay field, the Slope’s largest, averaged 260,289 bpd in April (82.5% crude, 214,644 bpd, and 17.5% NGLs, 45,645 bpd), down 3.5%, 9,396 bpd (2,401 bpd of crude and 6,995 bpd of NGLs) from a March average of 269,686 bpd (217,045 bpd of crude and 52,641 bpd of NGLs), and down 4.6% from an April 2019 average of 272,748 bpd (221,280 bpd of crude and 51,469 bpd of NGLs).

In addition to the primary reservoir, production volumes from Prudhoe include Aurora, Borealis, Lisburne, Midnight Sun, Niakuk, Polaris, Point McIntyre, Put River, Raven and Schrader Bluff.

The ConocoPhillips Alaska-operated Kuparuk River field averaged 97,555 bpd in April, down 4.7%, 4,827 bpd, from a March average of 102,382 bpd, and down 2.8% from an April 2019 average of 100,342 bpd.

In addition to the main Kuparuk pool, the field produces from satellites at Meltwater, Tabasco and Tarn, and from West Sak.

Nikaitchuq, operated by Eni, averaged 17,737 bpd in April, down 1,218 bpd, 6.4%, from a March average of 18,956 bpd, but up 5.1% from an April 2019 average of 16,877 bpd.

Oooguruk, also operated by Eni, averaged 7,562 bpd in April, down 1,157 bpd, 13.3%, from a March average of 8,719 bpd, but up 13.8% from an April 2019 average of 6,645 bpd.

ConocoPhillips Alaska’s Colville River averaged 50,854 bpd in April, down 892 bpd, 1.7%, from a March average of 51,747 bpd, and down 3.4% from an April 2019 average of 52,661 bpd.

In addition to oil from the main Alpine pool, Colville production includes satellite production from Fiord, Nanuq and Qannik.

ConocoPhillips Alaska’s Greater Mooses Tooth in the National Petroleum Reserve-Alaska averaged 4,699 bpd in April, down 4%, 194 bpd, from a March average of 4,892 bpd and down 61.7% from an April 2019 average of 12,253 bpd. The field is producing from three wells with one, MT6-05, accounting for 74% of the field’s production, 3,470 bpd in April.

The Hilcorp Alaska operated Northstar field averaged 9,492 bpd in April, down 145 bpd, 1.5%, from a March average of 9,636 bpd and down 16.5% from an April 2019 average of 11,373 bpd. In April 68.9% of the field’s production, 6,539 bpd, was from crude oil and 31.1%, 2,953 bpd, from NGLs.

Cook Inlet production up 5%

Cook Inlet production averaged 13,854 bpd in April, up 4.7%, 626 bpd, from a March average of 13,228 bpd but down 10% from an April 2019 average of 15,397 bpd.

Only three Cook Inlet fields, Redoubt Shoal, West McArthur River and Trading Bay, had month-over-month production increases.

The largest increase, 771 bpd, was at Redoubt Shoal, operated by Cook Inlet Energy, a Glacier Oil & Gas company. The field’s average production in April, 1,676 bpd, was an 85.3% increase from an average of 904 bpd in March, and a 36.1% increase from an April 2019 average of 1,231 bpd.

West McArthur River, also operated by Cook Inlet Energy, averaged 374 bpd in April, up 120 bpd, 47.5%, from a March average of 254 bpd but down 35% from an April 2019 average of 575 bpd.

Hilcorp’s Trading Bay field averaged 1,383 bpd in April, up 60 bpd, 4.5%, from a March average of 1,324 bpd, but down 14.3% from an April 2019 average of 1,615 bpd.

All other Cook Inlet fields had month-over-month production declines.

Hilcorp’s McArthur River field, Cook Inlet’s largest, averaged 3,928 bpd in April, down 147 bpd, 3.6%, from a March average of 4,075 bpd and down 20% from an April 2019 average of 4,912 bpd.

Hilcorp’s Granite Point averaged 3,230 bpd in April, down 28 bpd, 0.9%, from a March average of 3,258 bpd but up 24.9% from an April 2019 average of 2,586 bpd.

Hilcorp’s Middle Ground Shoal averaged 1,229 bpd in April, down 1.3%, 16 bpd, from a March average of 1,245 bpd and down 7% from an April 2019 average of 1,321 bpd.

BlueCrest’s Hansen field, the Cosmopolitan project, averaged 1,018 bpd in April, down 50 bpd, 4.7%, from a March average of 1,068 bpd and down 39% from an April 2019 average of 1,668 bpd.

Hilcorp’s Swanson River field averaged 852 bpd in April, down 7.3%, 67 bpd, from a March average of 919 bpd and down 20.5% from an April 2019 average of 1,072 bpd.

Hilcorp’s Beaver Creek averaged 163 bpd in April, down 9.4%, 17 bpd, from a March average of 180 bpd and down 60.9% from an April 2019 average of 417 bpd.

ANS crude oil production peaked in 1988 at 2.1 million bpd; Cook Inlet crude oil production peaked in 1970 at more than 227,000 bpd.





Cook Inlet gas production down 8%

Natural gas production in Alaska’s Cook Inlet averaged 204,584 thousand cubic feet per day in April, down 8.4%, 8,934 mcf per day, from a March average of 211,619 mcf per day and down 11.2% from an April 2019 average of 230,255 mcf per day.

This data is from the Alaska Oil and Gas Conservation Commission, which reports production on a month-delay basis. For natural gas AOGCC reports measurements in thousands of cubic feet, mcf.

Volumes from the inlet’s seven largest gas fields, which accounted for 81% of inlet gas production in April, averaged 165,400 mcf per day, down 4.5% from March, when they accounted for 82% of production.

Of those seven fields, only Hilcorp Alaska’s McArthur River had a month-over-month increase, averaging 20,819 mcf per day, up 2.7%, 555 mcf per day, from a March average of 20,264 mcf per day, but down 11.9% from an April 2019 average of 23,618 mcf per day.

The other six had month-over-month production declines.

Hilcorp’s Ninilchik field averaged 34,313 mcf per day in April, down 10%, 3,841 mcf per day, from a March average of 38,154 mcf per day and down 22.8% from an April 2019 average of 44,470 mcf per day.

Hilcorp’s Kenai field averaged 33,368 mcf per day in April, down 2,592 mcf per day, 7.5%, from a March average of 36,060 mcf per day, but up 1.5% from an April 2019 average of 32,863 mcf per day.

Hilcorp’s Swanson River averaged 32,067 mcf per day, down 0.6%, 198 mcf per day, from a March average of 32,265 mcf per day and down 5.7% from an April 2019 average of 33,988 mcf per day.

Beluga River, operated by Hilcorp, averaged 18,204 mcf per day in April, down 375 mcf per day, 2%, from a March average of 18,578 mcf per day and down 33% from an April 2019 average of 27,163 mcf per day.

Kitchen Lights, operated by Furie, averaged 13,790 mcf per day in April, down 1%, 137 mcf per day, from a March average of 13,927 mcf per day and up 18.9% from an April 2019 average of 11,597 mcf per day.

Hilcorp’s North Cook Inlet averaged 12,839 mcf per day in April, down 8.4%, 1,184 mcf per day, from a March average of 14,023 mcf per day and down 10.9% from an April 2019 average of 14,416 mcf per day.

Smaller inlet fields

Among smaller Cook Inlet fields, Hilcorp’s Beaver Creek had a significant month-over-month gas production increase, averaging 9,145 mcf per day in April, up 1,899 mcf per day, a 26.2% increase from a March average of 7,246 mcf per day and also up 18.3% from an April 2019 average of 7,733 mcf per day.

Other smaller fields also had increases, although not so large as that at Beaver Creek.

Hilcorp’s Trading Bay averaged 3,121 mcf per day in April, up 6.9%, 201 mcf per day, from a March average of 2,920 mcf per day but down 4.8% from an April 2019 average of 3,278 mcf per day.

Hilcorp’s Middle Ground Shoal averaged 357 mcf per day in April, up 34.9%, 92 mcf per day, from a March average of 265 mcf per day and up 55.8% from an April 2019 average of 229 mcf per day.

Hilcorp’s Granite Point averaged 3,524 mcf per day in April, up 1.2%, 41 mcf per day, from a March average of 3,483 mcf per day and up 26.7% from an April 2019 average of 2,782 mcf per day.

Hilcorp’s Lewis River averaged 1,105 mcf per day in April, up 1.4%, 15 mcf per day, from a March average of 1,090 mcf per day and up 346.7% from an April 2019 average of 247 mcf per day.

Redoubt Shoal, operated by Cook Inlet Energy, a Glacier Oil & Gas company, averaged 271 mcf per day in April, up 1.3%, 3 mcf per day, from a March average of 268 mcf per day and up 12.2% from an April 2019 average of 242 mcf per day.

Other smaller fields had decreases.

AIX’s Kenai Loop averaged 5,230 mcf per day in April, down 0.2%, 10 mcf per day, from a March average of 5,241 mcf per day and down 2.9% from an April 2019 average of 5,387 mcf per day.

Hilcorp’s Cannery Loop averaged 4,460 mcf per day in April, down 7.7%, 370 mcf per day, from a March average of 4,829 mcf per day but up 13.8% from an April 2019 average of 3,919 mcf per day.

Hilcorp’s Deep Creek averaged 4,074 mcf per day in April, down 0.4%, 17 mcf per day, from a March average of 4,092 mcf per day and down 16.2% from an April 2019 average of 4,864 mcf per day.

The Cook Inlet Energy-operated North Fork field averaged 3,593 mcf per day in April, down 0.9%, 32 mcf per day, from a March average of 3,625 mcf per day and down 0.6% from an April 2019 average of 3,614 mcf per day.

BlueCrest’s Hansen field, the Cosmopolitan project, averaged 3,453 mcf per day in April, down 16.9%, 701 mcf per day, from a March average of 4,154 mcf per day and down 61% from an April 2019 average of 8,863 mcf per day.

Hilcorp’s Ivan River averaged 346 mcf per day in April, down 4.3%, 16 mcf per day, from a March average of 362 mcf per day and down 26.3% from an April 2019 average of 470 mcf per day.

Amaroq’s Nicolai Creek averaged 260 mcf per day in April, down 7.7%, 22 mcf per day, from a March average of 282 mcf per day and down 36% from an April 2019 average of 406 mcf per day.

Hilcorp’s Nikolaevsk averaged 187 mcf per day in April, down 55.5%, 234 mcf per day, from a March average of 421 mcf per day; AOGCC records show no production from the field in April 2019.

Cook Inlet Energy’s West McArthur River averaged 58 mcf per day in April, down 18.6%, 13 mcf per day, from a March average of 71 mcf per day and down 45.9% from an April 2019 average of 106 mcf per day.

Cook Inlet natural gas production peaked in the mid-1990s at more than 850,000 mcf per day.

—KRISTEN NELSON


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