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Northstar, Duck Island PODs approved
Two of Northern Alaska’s smaller units get green light from Division of Oil and Gas for period from Feb. 13 through Feb. 12, 2022
Kay Cashman Petroleum News
Hilcorp Alaska’s Duck Island and Northstar units’ annual plans of development were approved by the Alaska Department of Natural Resources’ Division of Oil and Gas on Jan. 11 and Jan 14, respectively. The two units are among the smallest of the North Slope producing fields.
Formed Aug. 21, 1978, the Duck Island unit currently encompasses 17,587.62 acres, including three participating areas: Endicott, Sag Delta and Eider.
Jointly managed by the division and the U.S. Department of the Interior, Bureau of Safety and Environmental Enforcement, the Northstar unit was formed Jan. 24, 1990, and contains four state leases and three federal leases, totaling 20,134.70 acres. The Northstar unit has three participating areas: Northstar, Fido and Hooligan.
Northstar is operated from a 5-acre man-made gravel island offshore the central North Slope in the Beaufort Sea. The unit, 6 miles off the Beaufort Sea coast, straddles state nearshore waters and waters of the federal outer continental shelf.
The 39th POD for Duck Island and 17th POD for Northstar cover the period of Feb. 13, 2021, through Feb. 12, 2022.
Duck Island production Hilcorp said Duck Island production is from the Kekiktuk reservoir in the Endicott PA; the Ivishak and Sag River reservoirs in the Eider PA; and the Sag River reservoir in the Minke tract operation.
Hilcorp has been holding Duck Island production fairly steady.
From Jan. 1 through Aug. 31, Duck Island unit production averaged 7,174 barrels per day, a volume which includes both black oil and natural gas liquids, the company said.
In the 38th POD, submitted in November 2019, Hilcorp reported that from Jan. 1, 2019, through Sept. 30, 2019, unit production (black oil and NGLs) averaged 7,100 bpd.
The 37th POD, in November 2018, reported an average of 7,242 bpd (black oil and NGLs) from Jan. 1, 2018, through Sept. 30, 2018.
Duck Island activities The previous 38th POD had included plans for up to three workover operations; the company also anticipated continuing to pursue efficiencies through well optimizations, including evaluation of shut-in wells for potential return to service.
“Hilcorp did not complete any of the anticipated workover operations,” the company said in reporting on 38th Duck Island unit POD activities, “as the rig and capital allocated for those projects were diverted elsewhere.”
Non-rig well work operations to optimize wells at Duck Island were completed, as was continued optimization of the water separation train.
In the 39th POD application, Hilcorp said long-range activities included performing a “tracer study to understand injector/producer response to target potential future drilling targets.”
Planned well work and workover operations included converting MPI 01-25 from a producer to a gas injector; up to two additional workovers as needed; various non-rig well work operations.
Hilcorp said it plans a facility turnaround at the Duck Island unit in the summer for maintenance activities.
Northstar production In its 16th POD, which covers the period from Feb. 13, 2020, through Feb. 12, 2021, Hilcorp said it anticipated Northstar production would be maintained.
Northstar output averaged 9,221 barrels per day of oil from Jan. 1 through Sept. 30, a volume including both black oil and natural gas liquids. The previous POD reported an average of 10,095 bpd (also black oil and NGLs combined) for Jan. 1, 2019, through Aug. 31, 2019.
The Northstar field averaged 6,912 bpd in November, down 1,952 bpd, 22%, from an October average of 8,864 bpd and down 28.2% from a November 2019 average of 9,629 bpd.
Crude oil represented 83.3% of the field’s production in November, 5,758 bpd, up 7.6% from October and down 18.3% from November 2019.
Northstar NGL production for November averaged 1,154 bpd, 16.7% of the field’s production, down 67.1% from October and down 55.3% from November 2019.
Northstar activities Hilcorp did not plan on drilling any new wells during the 16th Northstar POD period but anticipated maintaining and enhancing production while completing the following projects:
* Acidize one or more Kuparuk producers and/or gas injectors to increase productivity/injectivity;
* Complete surface casing repair of NS-25, an active Ivishak producer in the Northstar PA;
* Construct an ice road for chiller module deliveries;
* Install support frames, set chiller modules, and install associated chiller system piping; and
* Commission chiller during summer 2020 for improved NGL recovery during warmer ambient temperatures.
Hilcorp successfully completed most of their anticipated projects for the 16th Northstar POD period. Hilcorp, however, did not acidize any Kuparuk PA producers due to undervoiding in the Kuparuk oil pool, but successfully installed a subsurface safety valve in the NS-25 well and added perforations in the NS-05 and NS-11 wells to increase the production rate, which were not originally planned for this POD period.
In its initial 17th POD, Hilcorp had no specific plans for exploration or delineation but anticipated maintaining Northstar production and committed to performing the following workover projects:
* Convert the NS-20, which has been shut-in since May 2019, from Ivishak producer to Kuparuk gas injector to help offset the voidage ratio in the Kuparuk horizon; and
* Replace corroded tubing in the NS-10 disposal well.
Additionally, Hilcorp committed to constructing an ice road for workover operations and anticipated a planned summer outage of eight to 10 days to perform maintenance activities.
In the amended 17th POD, Hilcorp cancelled the workover plans it committed to in its originally proposed 17th Northstar unit POD, which included the construction of an ice road, but now commits to converting the NS-15 well from a producer to an injector to increase gas injection and maintain production at Northstar.
Approval stipulates more info Both the Duck Island and Northstar unit PODs were approved by the division on the basis they protect the public interest, promote conservation, prevent waste, and protect the parties’ interests.
In both cases the division said it believes it would best serve the interests of Hilcorp, the state and the public for Hilcorp to provide in all its subsequent proposed Duck Island and Northstar unit PODs the following information:
* a table reflecting the well status of all wells within the units;
* a detailed status update for all wells within the units (regardless of whether the wells are shut-in); and
* a description of and all substantive information regarding the work or projects under evaluation by Hilcorp (even where final decisions have not been made on the work or projects).
“Hilcorp’s provision of this information to the Division is similar to the information Hilcorp already provides to the Bureau of Land Management Branch of Energy and Minerals for the Beluga River unit,” the division wrote in its approval letters to Hilcorp.
This information “will benefit both Hilcorp and the Division as it will provide a basis for practical and essential discussion for purposes of evaluating and reviewing the proposed POD(s),” the agency added.
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