|
Eni takes over at Oooguruk on Aug. 1; to finish drilling, test Nikaitchuq North well in 2020
Kay Cashman Petroleum News
Effective Aug. 1, Eni Petroleum will be the new operator of the Oooguruk unit on Alaska’s North Slope, per a June 20 decision by the state Division of Oil and Gas.
The action was triggered by the resignation of the current operator, Caelus Natural Resources, on June 19.
Eni announced it had acquired full ownership of the Oooguruk oil field in January, in which it previously held a 30% working interest; at that time the U.S. subsidiary of the Milan-based major said it would eventually be taking over as operator.
Already 100% owner and operator of the adjacent Nikaitchuq oil field, one of the reasons Eni gave for taking over at Oooguruk was because it wanted new oil to take advantage of significant spare capacity in its standalone Nikaitchuq production facility, which can handle 40,000 barrels per day and can be expanded to 50,000 bpd, per Eni Alaska Vice President Whitney Grande.
Eni said in January that its first goal was to increase its Alaska North Slope production to 30,000 barrels of oil per day.
That month, Nikaitchuq produced an average of 18,375 bpd and Oooguruk yielded 9,336 bpd, the combination of which would have brought the company a lot closer to its goal than the 21,186 bpd Eni would have gotten with only 30% of Oooguruk output.
Assuming Caelus and Eni’s deal is already giving Eni 100% of Oooguruk production, the total in April reached 23,522 bpd from the two units.
To finish Nikaitchuq North in 2020 Eni offered the same reason for acquiring full ownership in Oooguruk - spare capacity in its Nikaitchuq production facility - as it did for stepping out north of the Nikaitchuq unit in December 2017 to begin drilling the Nikaitchuq North exploration well, NN-01, the longest extended reach well of its type in Alaska.
Due to unforeseen challenges, including having to modify the drill rig and impacts related to seasonal drilling restrictions, Eni halted drilling again at the end of this winter’s drilling season. The company will resume drilling NN-01 next winter, in early 2020, when it hopes to reach its intended target depth and flow-test the well.
While the Nikaitchuq oil field lies in state land under the nearshore waters of the Beaufort Sea, the Nikaitchuq North oil prospect is in Harrison Bay Block 6423 immediately north of the state leases in the federal outer continental shelf of the Beaufort Sea. Drilling has been taking place from an existing drill pad on Spy Island, part of the Nikaitchuq field.
Target confidential, but ... Eni says Nikaitchuq North drilling is targeting an anomaly that appears on 3-D seismic, but that’s all it will say - the geological target(s) remain confidential.
The Schrader Bluff formation produced at the Nikaitchuq field is known to extend a long way out under the Beaufort Sea, to the north.
The previous unit operator, Kerr-McGee, talked about the possibility of testing the Jurassic Nuiqsut sandstone and the Triassic Sag River sandstone to the north.
While everything about the target of Nikaitchuq North drilling was removed from its public plan of development under its confidential status, there were some hints in the Oil Discharge Prevention and Contingency Plan application that appeared to be based on tapping the Jurassic Alpine sands, which would certainly qualify as an anomaly in the area.
Whatever the case, the 25,957 bpd in the contingency plan application could not be referring to the heavy Schrader Bluff oil that can’t flow unassisted.
Also, this and the measured depth and angle of the well suggest one of the Jurassic sands.
NN-01 was to have a vertical depth of 8,131 feet and a measured depth of 34,150 feet, although more recently company officials talk in terms of 35,000 feet for the measured depth.
“It will be the longest extended reach well in the state,” Grande said in November 2017.
- KAY CASHMAN
| 