|
Badami facilities could be used for Slugger development No further development drilling is planned for Badami; unit production remains at 2,000 barrels of oil per day Kristen Nelson PNA Editor-in-Chief
BP Exploration (Alaska) Inc. has told the state in an annual progress report that Badami unit production remains at about 2,000 barrels of oil per day and that no further development drilling is planned at the field — the farthest east producing field on the North Slope.
But the company said facilities at Badami could be used for other development.
BP has stopped importing gas from Endicott to Badami and has no plans to resume importing gas under the current plan of development.
Production continued through last winter without a pipeline shutdown and evacuation to avoid the line freezing. There were no significant changes in surface facilities and infrastructure at the field.
Well work was limited to minor non-rig interventions, and that is expected to continue for this plan of development. The field is being operated with limited manpower, with approximately 15 people on site.
Badami satellite evaluation continues Last February, BP constructed an ice road and removed the Badami and Point Thomson drilling rigs. BP said it has no plans for further development drilling at Badami.
But satellite evaluation continues, and Badami facilities could be used for Slugger, an exploration unit which lies a few miles to the south (see adjacent map).
“Further evaluation of satellite potential within the unit was undertaken and discussions with third parties interested in participating in exploration of this potential have taken place,” BP said.
“Discussions have also taken place with the Slugger exploration unit partners regarding use of the Badami facilities for non-unit activity and development.”
BP is also the unit operator at Slugger. BP and the other Slugger unit working interest owners, Chevron and Phillips, all submitted letters to the Department of Natural Resources in July, committing to drill the Slugger No. 1. The companies had previously presented reprocessed Slugger unit seismic data to the Division of Oil and Gas.
The well requirement at Slugger requires drilling through the Kemik interval by May 15, 2003, subject to termination of the unit and payment of a $430,000 penalty, which will be paid by BP and Chevron should the well not be drilled by the state’s deadline.
As reported by PNA in August, BP farmed out all — and Chevron and Phillips farmed out part — of their working interest in the Slugger unit to independents Forest Oil Corp. and Andex Resources LLC in exchange for a disproportionate share of the costs of the first Slugger well. Andex and Forest will each receive approximately a 20 percent working interest in the eastern North Slope unit.
On Aug. 21, a Chevron representative told PNA, “One of the reasons we like Slugger is it should ring the cash register faster than our other North Slope exploration prospects since, if successful, the production will likely be processed at the existing Badami facilities.”
| 