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POD, SOP extended for Middle Ground Shoal
Division approves Hilcorp Alaska request to amend, extend 2021 plan of development, suspension from Dec. 21 to June 30, 2023
Kristen Nelson Petroleum News
Hilcorp Alaska suspended production at its Middle Ground Shoal unit in Cook Inlet in early April 2021 after it discovered a leak in the fuel gas pipeline. The company had just submitted the 2021 plan of development for Middle Ground Shoal to the Alaska Department of Natural Resources’ Division of Oil and Gas and in June 2021 the company applied for a suspension of production because of the pipeline leak.
The division approved the SOP through Dec. 21, 2022, and the 2021 POD was amended to be extended through the end of the SOP on Dec. 21.
On Oct. 27, Hilcorp applied to amend and extend the POD and SOP to expire on June 30, 2023, which would align Middle Ground Shoal with the company’s other offshore plans of development.
Division of Oil and Gas Director Derek Nottingham approved the amendment and extension Nov. 22, saying: “This extension allows time for Hilcorp to finalize options associated with either repair or replacement of the MGSU pipeline. This also aligns the MGSU POD with other offshore Hilcorp POD periods to help with planning and logistic efficiencies.”
Hilcorp told the division in its Oct. 27 request that the amendment and extension were necessary for the company “to finalize our evaluation of options associated with the repair or replacement of the MGS pipeline” and said it would provide the state with a status report on the project by Nov. 16, “including options evaluated to data and associated permitting accomplishments.”
Middle Ground Shoal A well in the Middle Ground Shoal field drilled in 1963 by Amoco Production Co. “was the first offshore discovery in both Alaska and the Cook Inlet,” Nottingham said. A unit was formed in 1967 and expanded in 2016.
Alaska Oil and Gas Conservation Commission data show that, to date, cumulative Middle Ground Shoal production accounts for 14.8% of Cook Inlet oil production and 0.09% of Cook Inlet natural gas production. In March 2021, the last full month of production at Middle Ground Shoal, the field averaged 1,226 barrels per day of oil, 11.5% of inlet production in that month, and 218 thousand cubic feet of natural gas per day, 0.09% of inlet production.
Protection of public interest Nottingham said Hilcorp’s plans in the second amendment and extension to the plan of development and suspension of production protect the public interest in development of the state’s resources “by keeping production from the MGSU shut-in until Hilcorp either has successfully repaired or replaced the Pipeline, allowing all MGSU production and fuel gas to be safely transported to and from the offshore platforms to onshore facilities.”
The division is requiring Hilcorp to continue providing written updates every 60 days on status of the pipeline and efforts to repair or replace it.
Hilcorp said the extension allows it “to fully evaluate all options relative to MGS pipeline repair/replacement by the close of 2022 and keep DNR informed on the cost-benefit of platform reactivation relative to remaining reserves, prevention of waste and conservation of resources.”
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