Rezoning of Nikaitchuq in process

Although they have not made a formal development announcement, Kerr-McGee and partner Armstrong Alaska have been meeting with permitting agencies about their proposed Nikaitchuq unit development on Alaska’s North Slope. (See story in April 10 issue of Petroleum News.) The partners also have a request into the North Slope Borough to rezone the project area south of Spy Island and north of Oliktok Point.

On April 28 Kerr-McGee and Armstrong attended a meeting in Nuiqsut with borough land planning department officials to hear local input on the rezoning and to respond to concerns, which included the possibility of disturbing Arctic Cisco migration. No decision was made at that meeting, but Armstrong Vice President Stu Gustafson, who attended with Kerr-McGee’s Alaska drilling manager, agreed to extend the March 18 rezoning request beyond the 60 day limit the borough allows itself to make a decision. (Under borough regulations if the borough has not made a decision in that period, the rezoning request is automatically approved.) Rezoning for Nikaitchuq will be addressed on May 26 in Barrow at the next regularly scheduled meeting of the planning commission.

Located in the shallow waters of the Beaufort Sea offshore the Kuparuk River unit, Nikaitchuq is expected to produce about 60,000 barrels of oil per day.