Hilcorp requests MGS suspension of production

Kristen Nelson

Petroleum News

Hilcorp Alaska has submitted a request for suspension of production and operation for its Middle Ground Shoal unit in Cook Inlet.

In a June 22 request to Tom Stokes, director of the Alaska Division of Oil and Gas, Hilcorp said it was requesting the suspension of production operations “as all unit production has temporarily ceased due to a leak in a fuel gas pipeline that travels from Platform A to the East Forelands Delivery Facility. As a result of the leak the entire unit fuel gas system has been shut down, prompting the shut-in of all wells and platforms.”

Hilcorp said the suspension would be until the fuel gas system is evaluated, repaired and returned to operational status. The company noted that its 2021 Middle Ground Shoal plan of development had conditional approval, with a requirement that the company provide written updates to the division on the evaluation and repair of the fuel gas system.

The leak in the fuel line was reported April 1 and the federal Pipeline and Hazardous Materials Safety Administration issued a corrective action order April 3, requiring reduced pressure in the fuel gas line, the Middle Ground Shoal A pipeline, completion of a temporary repair within 15 days and shutdown of the line if that deadline could not be met.

On April 6 PHMSA amended the corrective action order, requiring Hilcorp to replace the line between Platform A and shore.

The amended CAO requires that the MGS-A line remain shut-in and not operated until authorized by the PHMSA director. Hilcorp then had 45 days to submit a replacement work plan and 365 days from the April 6 date of the amended CAO to complete the replacement.

Alaska Oil and Gas Conservation Commission data show only a single day of production from Middle Ground Shoal in April and no production thereafter.

When the Alaska Department of Environmental Conservation, Division of Spill Prevention and Response, issued a final situation report on the leak in early June, it said an investigation into the cause of the release was ongoing, overseen by PHMSA. DEC said PHMSA has approval authority for repairs and that DEC was taking no further response.

- KRISTEN NELSON -