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Pikka unit amendment confirming Oil Search as operator approved
Kay Cashman Petroleum News
The first amendment to the Pikka unit agreement filed June 1 by operator and working interest owner Oil Search (Alaska) was approved July 29 by the Alaska Department of Natural Resources’ Division of Oil and Gas.
The unit consists of 89 North Slope tracts (leases and parts of leases) that are jointly managed by the landowners, the state of Alaska and Arctic Slope Regional Corp.
Oil Search, with a 51% interest, had filed the “belt and suspenders” amendment on behalf of itself and the other Pikka unit working interest owner, Repsol E&P USA, 49% (see story in the June 28 issue of Petroleum News).
Although the unit agreement declares Oil Search the operator, mentions of Repsol being the operator still appeared in random official documents. The purpose of the amendment was to make certain everyone understood Oil Search was unit operator.
The June 1 filing, which was signed by both Oil Search (Alaska) President Bruce Dingeman and Repsol (signature illegible), also updated relevant addresses and other contact information.
Oil Search mailed the amendment to both DNR Commissioner Corri Feige and to Rex Rock Sr., president of ASRC.
History of unit agreement The initial 33-lease Pikka unit was formed effective June 1, 2015, by then-working interest owner and operator Repsol, along with working interest owners Armstrong subsidiary 70&148, which brought Repsol into the play, and GMT Exploration Co.
DNR approved the first expansion of the Pikka unit on Nov. 29, 2016, and ASRC approved it on Feb. 28, 2017.
In a March 7, 2018, letter to DNR and ASRC, Oil Search was designated as successor unit operator in accordance with an article in the agreement. DNR and ASRC approved the change in operatorship on March 20 and 21, respectively.
A revised Pikka unit operating agreement between the working interest owners was filed with DNR and ASRC on Oct. 9, 2019.
Pikka is expected to produce 135,000 barrels of oil per day, with production starting in 2025, and that is excluding output from what is anticipated to be Oil Search’s next North Slope development from the nearby Horseshoe discovery with its most recent Stirrup prospect find.
- KAY CASHMAN
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