Conoco sees North Cook Inlet bump

ConocoPhillips Alaska Inc. appears to have slowed declining natural gas production at the North Cook Inlet unit through a workover program and other maintenance work.

The offshore Cook Inlet unit produced 9.29 billion cubic feet in 2014 and 7.33 bcf in 2015, according to the Alaska Oil and Gas Conservation Commission. In the first six months of 2016, the unit produced 3.58 bcf, which suggest a decline from 2015, although not as steep as the decline between 2014 and 2015.

After completing a three well program at the North Cook Inlet unit in 2008, ConocoPhillips reduced its development program at the offshore field in Cook Inlet. A decline in reservoir pressure across most of the field and increased sand production in places have contributed to an overall decline in production since the drilling program.

The slowdown in declining production this year might be the result of a four-well workover program and other maintenance projects ConocoPhillips undertook at the North Cook Inlet unit in 2015. When the company released its plan for 2016, it proposed no such work for this year but looked forward to a possible workover program in 2017.

The actual plan for 2017, released in early October, provided few details, noting, “The team continues to evaluate future rig work-over and/or drilling opportunities” and “ConocoPhillips plans to continue to evaluate potential undeveloped accumulations.”

North Cook Inlet has traditionally been connected to the Kenai liquefied natural gas facility in Nikiski. Activity at the plant has been sporadic in recent years. ConocoPhillips shipped five cargoes between May and September 2014 and six cargoes between May and mid-October 2015. The company made no shipments in the first quarter of 2016, despite receiving U.S. Department of Energy permission to continue exports. Instead, the company has been selling gas production from North Cook Inlet into the local market.

- ERIC LIDJI