State approves Hilcorp Milne F Pad work
Kristen Nelson Petroleum News
The Alaska Department of Natural Resources; Division of Oil and Gas has approved an application from Hilcorp Alaska for a Milne Point unit plan of operations amendment. The Aug. 10 approval is for installation of a separator vessel, modules, tanks and header connections to provide water separation capability at F Pad in the Milne Point unit.
“The purpose of this project is to allow for F Pad to have on-pad water injection capability which will facilitate an increase in production,” the division said.
F Pad at Milne averaged 4,856 barrels per day in June, the most recent month for which Alaska Oil and Gas Conservation Commission production data is available, accounting for 13% of Milne’s average 37,620 bpd production in that month.
Hilcorp has been working to increase production at Milne Point since it acquired a 50% working interest ownership from BP Exploration (Alaska) in 2014 and took over as operator at the unit. (In 2019 Hilcorp acquired ownership of all of BPXA’s Alaska assets, including the remaining 50% of Milne Point WIO, a deal which closed in mid-2020.)
Milne production averaged 19,391 bpd in 2014 and increasing production from the field has been a stated Hilcorp goal. In 2014, F Pad averaged 4,708 bpd, 24% of the field’s production.
Project components The division said major components of the approved work include installation of 66 pilings and placement of a 28,174 gallon separator with secondary containment. Project work is scheduled to begin in August and to be complete by July 2023. The division said equipment will be stored and refueled on existing roads and pads.
The division said plan activities include:
*Installation of pilings and containment for separator and associated infrastructure.
*Installation of separator vessel.
*Installation of electrical module platform.
*Installation of pipe rack.
*Installation of water injection pump module.
*Installation of electric switch gear module.
*Installation of skid mounted sand jet tank.
*Installation of associated instruments, pumps, valves, connection piping and source water and produced water header connections.
A map accompanying the decision shows the location of F Pad, which is at the northernmost onshore point of Milne Point.
- KRISTEN NELSON
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