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RCA considering Badami transfer
State regulators are considering a request to transfer a controlling interest in two pipelines associated with the Badami unit as part of an acquisition at the eastern North Slope field.
Savant Alaska LLC is looking to transfer its 67.5 percent interest in Nutaaq Pipeline LLC to Miller Energy Resources Inc., which is acquiring the small North Slope independent.
The ASRC Exploration LLC subsidiary Badami Pipeline Holding Company LLC holds the remaining 32.5 percent interest. ASRC Exploration is a subsidiary of Arctic Slope Regional Corp., which is the Alaska Native corporation covering the North Slope region.
Nutaaq Pipeline is the certificated operator of the Badami Oil Pipeline and the Badami Gas and Products Pipeline. The Badami Oil Pipeline, also known as the Badami Sales Pipeline, connects the unit to the Endicott Pipeline. The Badami Gas and Products Pipeline is also known as the Badami Utility Pipeline and runs from Endicott to Badami.
No changes in day-to-day operation After operating an exploration program nearby, Savant joined the Badami unit in 2008, under a farm-out agreement with then-operator BP Exploration (Alaska) Inc. Savant undertook a multiyear development program at the unit and became operator in 2012.
Under the proposed acquisition, Miller subsidiary Miller Energy Colorado 2014-1 LLC would merge into Savant and Savant would remain as the surviving entity, giving Miller an indirect interest in the unit and its associated infrastructure, such as the pipelines.
The proposed transfer makes no changes to the day-to-day operation and management of the pipelines, or to the “dismantlement, removal and restoration” obligations BP Transportation (Alaska) Inc. continues to hold for the entire Badami Pipeline System.
While crucial for the operation of the Badami unit, the two Badami pipelines are also a link to future development of the eastern North Slope, including the Point Thomson unit.
The Regulatory Commission of Alaska is currently considering the requests. The companies have asked the regulators to issue an expedited ruling by Oct. 24.
- Eric Lidji
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