Kerr-McGee confirms North Slope JV talks with Pioneer
Ray Tyson
Exploration and production independents Kerr-McGee and Pioneer Natural Resources are indeed considering a possible joint development of their oil discoveries on Alaska’s North Slope, Kerr-McGee confirmed in an Aug. 25 conference call with industry analysts.
“We have begun discussions with Pioneer to explore potential development synergies in Alaska,” said Rick Buterbaugh, Kerr-McGee’s vice-president of investor relations.
Pioneer CEO Scott Sheffield told Petroleum News in early August that such a joint venture was possible, but Kerr-McGee declined to comment. However, Pioneer said additional drilling and review of well logs and other geological data would be necessary before serious talks could begin with Kerr-McGee.
In the conference call, Buterbaugh said Kerr-McGee expects to drill two appraisal wells this winter on its Northwest Milne acreage “to confirm deliverability and to establish the aerial extent of the reservoir.” He said the company also expects to drill at least one exploratory well this winter on its West Milne Point acreage.
The two Northwest Milne wells are in the Nikaitchuq unit and the exploratory well is in the Tuvaaq unit, immediately to the west of Nikaitchuq. (See initial story on Kerr-McGee’s North Slope drilling plans in the July 18 edition of Petroleum News.)
|