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AOGCC approves multiphase meter
The Alaska Oil and Gas Conservation Commission has authorized the use of multiphase flow meters for fiscal allocation of production between the West McArthur River and Redoubt Shoal units on the west side of Cook Inlet. This allows Cook Inlet Energy, sole owner and operator of the fields, to decommission the old West McArthur River facilities and process West McArthur River and Redoubt Shoal production at its Kustatan Production Facility.
The commission said in a Feb. 28 order that Cook Inlet Energy requested permission to use multiphase flow meters in May 2016. The company’s goal was to replace processing at the aging West McArthur River facilities with processing at the newer, and underutilized, Kustatan facilities, which have been processing only Redoubt Shoal production.
Currently produced fluids from the West McArthur River field are processed and sales quality oil is temporarily stored at the company’s West McArthur River production facility before being transported to custody transfer meters at the Trading Bay production facility. Redoubt Shoal is produced from the Osprey platform and fluids are processed and sales quality oil temporarily stored at the company’s onshore Kustatan production facility. Those fluids are also transported to custody transfer meters at the Trading Bay production facility.
Remaining oil Cook Inlet Energy plans to decommission West McArthur River production facilities due to end-of-life considerations including corrosion associated with increasing concentrations of hydrogen sulfide gas. The company estimates that as much as 2 million barrels of economically recoverable oil remain at West McArthur River, but production facilities at the field would require extensive repairs. The company told the commission that use of the Kustatan production facility for processing and intermediate storage of commingled sales quality oil would extend the life of both fields.
Kustatan also is the central hub for power generation and natural gas handling for west side Cook Inlet production operations.
Kustatan, more modern and efficient than West McArthur River, was designed to process some 25,000 barrels of fluid per day and store 50,000 barrels, but Redoubt Shoal currently produces only some 1,000 bpd. The company told the commission that in addition to handling West McArthur River and Redoubt Shoal, Kustatan is capable of handling current and anticipated production from offset Cook Inlet Energy developments in the area.
The commission said the company’s application and testimony indicate that consolidating production facilities for the fields would reduce the operating expenses for each unit and thus extend the economic life of the units, which should lead to greater ultimate recovery than if the units continued to operate separate production facilities.
“Evidence provided by CIE shows the only long term economic option for continuing to produce the WMRU and RU fields is to use the multiphase flow meters at each location for fiscal allocation before commingled processing and temporary storage at the Kustatan Production Facility,” the commission said in its decision.
While the individual processing facilities could be kept running in the short term, AOGCC said, “eventually both units would no longer be able to produce enough to keep the facilities economically viable and would thus need to shut in production. By consolidating production operations, the operational expenses will be reduced and shared by the two fields and the fields’ economic lives would be extended, which will lead to increased economic recovery.”
Multiphase meters at Oooguruk The commission noted that it has authorized multiphase flow meters at the Caelus Energy Alaska-operated Oooguruk unit, and said that approval provides the framework for proceeding with the Cook Inlet Energy request.
The commission required, and Cook Inlet Energy provided, an operations and maintenance guidelines for the multiphase flow meters. AOGCC is requiring that the company sample production streams from the two fields every six months, and oftener under certain circumstances, providing data for flow volume and correction calculations for the meter.
The commission is also requiring an audit team with members from the flow meter company, Cook Inlet Energy and AOGCC with an independent third party recognized as an expert chairing the team. The team will audit the multiphase flow meter performance after the first 12 months and then every 24 months, unless the commission requires a more frequent audit.
- KRISTEN NELSON
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