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Oil Patch Insider
Petroleum News Alaska Staff
Becky Gay goes to Juneau; no workover incentives in site; BP mum on sale of leases, but deadline Apr Becky Gay, former Resource Development Council of Alaska executive director, is putting her knowledge of community economic issues to good use these days. Becky joined the staff of state Representative John Harris, former Valdez mayor and co-chair of the House Finance Committee.
Although she lost her recent bid for the state house, Becky says she is enjoying learning the legislative process from a staff perspective. Nordic Rig 3 did NOT fall through the ice; it hit a soft spot Contrary to rumors (partly spread by a state legislator), Nordic Rig 3 did not "fall through the ice" at Pioneer Natural Resources' offshore Kuparuk Northwest prospect earlier this month.
Rather, the rig hit a soft spot on the ice road to Pioneer's Oooguruk ice island, which is akin to hitting a pothole in a gravel road.
The rig was jacked up and pulled onto mats and then walked off the ice road, which is in the shallow waters of the Beaufort Sea. It is headed to Natchiq, where it will drill the third of three wells for Pioneer.
Nabors Rig 27E will drill Oooguruk. BP mum on sale of exploration leases; deadline for bids April 30 There have been no announcements from BP about its efforts to market its North Slope exploration leases, but company spokesman Daren Beaudo was willing to say that deadline for bids is April 30 and that there has been interest in the acreage.
“Our intent is to evaluate and notify the successful bidders as soon as possible after the bid date so that the companies will be best able to plan for the fall lease sale season. We would look to close any sales in the third quarter or thereabouts. Any data that would be outside of what a successful bidder would get will also be sold at a very reasonable discounted price,” Daren said
As per the story in PNA’s Dec. 1 edition and a press release from BP shortly thereafter, the company is offering to sell more than 400,000 acres of its North Slope acreage to 15 oil companies, including independents, that BP describes as “positioned to prospect the leases.”
The offering includes state and federal leases between the Canning and Colville Rivers and north of the Brooks Range Foothills. Also included are seismic and well data, including drilling core, and BP’s interpretations of the data.
Excluded from the sale is BP’s lease acreage in the National Petroleum Reserve-Alaska, the Foothills and the coastal plain of the Arctic National Wildlife Refuge. Whatever happened to governor’s workover incentives? At Arctic Power’s 19th annual meeting Feb. 14 in Anchorage, Gov. Frank Murkowski offered some specifics on what he is considering to stimulate Alaska’s oil production. Among other things he said he was looking at offering North Slope producers tax credits for working over existing wells to stimulate production in the short term: “This proposal could offer producers a short window of opportunity, maybe two, three years, to take advantage of a well workover credit,” the governor said.
So far, no such legislation has surfaced.
When asked if BP Exploration (Alaska) Inc., operator of Prudhoe Bay where most of the wells would be, had any plans to do additional re-entry of Prudhoe wells this year, spokesman Daren Beaudo said, “Can’t say we’ll have enough activity to require another additional drilling rig, but the working interest owners are currently considering additional funding for workover activity. Of the 200-plus wells there are only about 30-40 that are economical.”
Perhaps the $35-plus per barrel oil “incentive” is working.
Editor’s note: Oil Patch Insider is compiled by Paula Easley and Kay Cashman. If you have a news tip, please send it to [email protected] or call 907 770-3505.
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