BSEE approves Beaufort unitization

The Bureau of Safety and Environmental Enforcement has approved the unitization of 20 leases operated by ASRC Energy Services in the Camden Bay area of the Beaufort Sea, Mark Fesmire, BSEE Alaska director, has told Petroleum News. The leases were previously owned by Shell but were transferred to AEX in 2016. The leases include the Sivulliq and Torpedo prospects.

Most of the leases are due to expire in October 2017. But AEX has filed a work plan and an application for a suspension of operations, to extend the life of the leases. Through unitization, work on any of the leases would extend the life of all leases in the unit, Fesmire explained. There is no specific timeframe for BSEE’s decision on the lease extensions - the extensions could apply retroactively, Fesmire said.

“I think it’s indicative of the potential for exploration up there,” Fesmire said.

- ALAN BAILEY