THE EXPLORERS 2004: Pioneer to develop at Gwydyr Bay

Kristen Nelson

Petroleum News

In October 2004, Pioneer Natural Resources Alaska applied to the state of Alaska to construct and operate onshore oil and gas production facilities just north of the BP-operated Prudhoe Bay unit at Gwydyr Bay.

Both BP Exploration (Alaska) and ARCO Alaska have drilled in this area, Pioneer said in applications for the work, which includes a four-acre gravel pad and a 2.8-mile gravel access road to a site some three miles north of T Pad in the Prudhoe Bay unit in the vicinity of BP’s Pete’s Wicked No. 1 exploration well.

Produced fluids would be transported by a gathering pipeline system and processed at an existing Prudhoe Bay facility.

Pioneer acquired the leases in the state’s 2003 North Slope and Beaufort Sea areawide lease sales.

“The Gwydyr Bay area contains relatively small isolated hydrocarbon accumulations” discovered during exploration by BP and ARCO, Pioneer told the state. “These oil fields have not previously been developed due to their relative isolation and size.”

The company “proposes to utilize a simple design and cost structure to develop these outlying fields.” A six- to 12-month drilling program is planned with a conventional diesel-powered drilling rig, a coiled-tubing workover rig, waterflood and gas lift facilities.

Production is expected to begin in the spring of 2006, with a 10 to 20 year production life.