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Providing coverage of Alaska and northern Canada's oil and gas industry
January 2022

Vol. 27, No.5 Week of January 30, 2022

PODs approved for Duck Island, Northstar

No drilling planned, but Hilcorp will do wellwork, workovers at Duck Island, facilities work, coastal defense repair at Northstar

Kristen Nelson

Petroleum News

The Alaska Division of Oil and Gas has approved plans of development for two of the North Slope’s smallest units, Duck Island and Northstar, both operated by Hilcorp Alaska.

In Jan. 20 approvals, signed by acting Director Justin Black, the division said neither POD includes any new wells, but both include other work to maintain and enhance production.

Duck Island unit

This is the 40th POD for Duck Island, which was formed in 1978 and currently includes 17,587.62 acres, with three participating areas, Endicott, Sag Delta and Eider.

The division said production from November 2020 through October 2021 increased slightly from the 39th POD, totaling 2.34 million barrels of oil and natural gas liquids and 131.9 million cubic feet of gas.

For November 2019 through October 2020 production was 2.28 million barrels of oil and NGLs and 135.9 million cubic feet of gas.

Cumulative Duck Island unit oil and NGL production through November 2021 was 523.7 million barrels of oil and 3.956 billion cubic feet of natural gas.

Hilcorp did not drill any new wells during the 39th POD but planned up to three workover operations and various non-rig wellwork and a facility turnaround for planned maintenance.

The division said Hilcorp postponed a planned workover of the MPI 01-25 well, instead evaluating converting MPI 1-21 to gas injection. The company completed a planned surface facility turnaround. It also enhanced production with non-rig wellwork:

*3-25B well perforation add;

*2-60 well surface casing evacuation;

*4-32 well surface casing evacuation;

*1-39A well perforation add;

*4-38 well re-perforation;

*2-14 well perforation add;

*3-03 well return to service following long-term shut-in; and

*1-29 well perforation add.

DIU 40th POD

For the 40th POD Hilcorp plans wellwork and workovers:

*Tracer study to understand injector/producer response to target potential future drilling targets;

*Rig workover on 3-11 well to install new tubing string and return well to production;

*Rig workover on 1-29 well to fix production casing leak and return well to production;

*Conversion of 1-21 and 1-07A wells to gas injection for enhanced gravity draining recoveries;

*Increase injectivity on current water injection wells and convert wells to water injection;

*Perform additional workover operations as needed to enhance and maintain production; and

*Perform various non-rig wellwork operations to maintain and enhance production.

Key facility projects in the 40th POD include:

*Upgrade/repair SDI low flow test separator internals;

*Propane turbine demister install; and

*Facility turnaround for vessel cleaning and inspection, LACT meter upgrades, rotating equipment overhaul and repairs, retraying condensate stabilizer and flare inspection and repair.

Northstar unit

The Northstar unit was formed in 1990 and is jointly managed by the division and the U.S. Department of the Interior, Bureau of Safety and Environmental Enforcement. There are four state leases and three federal leases , a total of 20,134.7 acres, and three participating areas, Northstar, Fido and Hooligan.

Northstar production from November 2020 through October 2021 increased from the previous POD, totaling 2.97 million barrels of oil and NGLs and 200 million cubic feet of gas. From November 2019 through October 2020 production totaled 2.28 million barrels of oil and 197.8 million cubic feet of gas.

Cumulative Northstar oil and NGL production through October 2021 was 186.7 million barrels and 3.209 bcf of gas.

Hilcorp had no new wells planned during the previous, 17th POD.

The company planned two projects:

*Converting Kuparuk oil pool producer NS-15 to an injector to increase gas injection; and

*Facility summer outage to perform planned maintenance.

The division said Hilcorp completed facility maintenance projects, including installing 45 heat pipes around modules to enable active ground refrigeration to reduce ground settlement, and ongoing repair of the island’s coastal defenses.

The company did not convert NS-15 to an injector “due to an update in injection management strategy.”

Northstar 18th POD

Hilcorp does not plan exploration or delineation drilling during the 18th POD but plans to install active refrigeration on 45 newly installed heat pipes and 41 converted thermosyphons as well as continuing repair of the island’s coastal defenses.

The division said the company committed to long-range development activities:

*Exploring opportunity to import gas from Prudhoe for pressure maintenance of the Kuparuk reservoir;

*Reviewing potential coil tubing drilling candidates and determining if coil tubing operations are economically viable and mechanically feasible on the island; and

*Researching economic viability of Sag River development. The division that that might require stimulation techniques because of low permeability and porosity.






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