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State approves, partially approves, 4 PODs
Hilcorp Granite Point, North Cook Inlet, Trading Bay plans OK’d; Middle Ground Shoal OK’d for A, C platforms; not for Baker, Dillon Kristen Nelson Petroleum News
The Alaska Department of Natural Resources, Division of Oil and Gas, has approved three Cook Inlet plans of development submitted by Hilcorp Alaska and partially approved a fourth.
In May 14 decisions, the division approved the company’s 2018 plans of development for the Granite Point unit, the North Cook Inlet unit and the Trading Bay unit.
It partially approved the POD for the Middle Ground Shoal unit.
Middle Ground Shoal The Middle Ground Shoal unit, formerly known as the South Middle Ground Shoal unit, is a combination of the South Middle Ground Shoal unit, the North Middle Ground Shoal field and the Middle Ground Shoal field. There are four platforms in the unit: A, C, Baker and Dillon. During the 2017 calendar year, production from the A platform averaged 165,000 standard cubic feet per day of natural gas and 562 barrels per day of oil, while C platform production averaged 63,000 cubic feet per day of natural gas and 284 bpd of oil, the division said.
The Baker and Dillon platforms did not produce in 2017.
The division said Hilcorp proposed to sidetrack three existing wells from the C platform in its 2017 POD, but no drilling was done due to a gas pipeline leak that shut down production from C platform.
“Because of the leak, pipeline inspections were completed and repairs were made,” the division said, with production resuming in late 2017.
In its 2018 POD Hilcorp proposed continuing production from the A and C platforms, with maintenance inspection work planned for the A, C and Baker platforms.
The division said continued production from the A and C platforms will bring economic benefit to the state but said “Hilcorp’s lack of work for the Baker and Dillon platforms and lack of production” from those platforms does not support the best interests of the state.
Approval has been granted only for the A and C platforms and two tracts within the unit. There is an appeal period of 20 calendar days.
Granite Point The Granite Point unit was formed in 2015 when the South Granite Point unit was expanded to include the Granite Point field and renamed the Granite Point unit.
There are six offshore state oil and gas leases in the unit, and two participating areas - the Hemlock Sands and Granite Point Sands - with operations from the Granite Point, Anna and Bruce platforms. Processing is at the Granite Point production facility.
Granite Point production began in 1967 and cumulative production through the end of 2017 was 137.13 billion cubic feet of natural gas and 153.26 million barrels of oil. The 2017 rate from the three platforms is an average of 2,408 bpd.
In its 2017 POD Hilcorp planned to maintain oil and gas production and sidetrack as many as three wells from the Granite Point platform; the division said production was maintained and two sidetracks were drilled, in addition to various facility improvements and repairs to the platform.
Hilcorp plans to maintain production during its 2018 POD and to evaluate long-term options for drilling additional sidetracks.
In approving this POD the division said the maintenance of production will benefit the state.
North Cook Inlet Hilcorp took over operation of North Cook Inlet from ConocoPhillips in late 2016. North Cook Inlet has been in production since 1969 and has produced 1,909 billion cubic feet of natural gas through the end of 2017, with 2017 production increasing from 16 million to 19 million cubic feet per day.
During the 2016 POD period Hilcorp continued to manage the field by optimizing life cycle depletion of the mature gas field and exploit under depleted gas sands.
During the 2017 POD Hilcorp planned to maintain production, which it accomplished with the addition of perforations in three wells, the division said, with structural engineering assessments also begun for future facilities work.
In its 2018 POD Hilcorp plans to continue evaluating future rig workover and drilling opportunities, the division said, and while the company plans to evaluate potential undeveloped accumulations it has no specific exploration plans.
“Work to update the platform for new crew quarters will be completed, as will pipeline work as part of the Cook Inlet Pipeline Cross Inlet Extension Project,” the division said.
In approving the plan the division said while Hilcorp does not propose to expand development or undertake new exploration, it continues production from existing facilities, protecting the state’s economic interests in the facilities.
Trading Bay The Trading Bay unit was formed and began sustained production in 1967. It produces from four participating areas in the McArthur River field - the Hemlock oil pool, West Foreland oil pool, the Middle Kenai G oil pool and the Grayling Gas Sands.
The unit was expanded in 2013 to include the Trading Bay field.
Average daily oil production in calendar year 2017 was some 4,621 bpd; average natural gas production was 21 million cubic feet per day.
During the 2017 POD Hilcorp anticipated drilling up to four sidetracks from existing wells and three new wells, the division said. The company drilled three of the four sidetracks but no new wells. Electric submersible pumps were replaced as needed and many workovers completed. An additional planned sidetrack from the Monopod platform was planned but not drilled.
The division said that during the 2018 POD, Hilcorp plans to drill two wells from the Steelhead platform and sidetrack a well from the Monopod platform, as well as replace electric submersible pumps as needed.
In approving the plan the division said Hilcorp is continuing drilling and workovers from the previous plan. “The projects and operations are helping to increase production in fields that have been producing for over 50 years,” and the 2018 POD will continue existing production “while conducting new drilling, well workovers, and evaluations of shut-in wells to further increase production.”
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