|
Division of O&G approves Prudhoe IPA POD
BP has advised division that work in 2020 POD may not be completed because of COVID-19; division has assured company of support Kristen Nelson Petroleum News
The Alaska Division of Oil and Gas has approved BP Exploration (Alaska)’s 2020 plan of development for the initial participating areas at the Prudhoe Bay unit. The POD was received March 26, the division said in a May 13 approval, and said an April 1 letter from BP advised the division that “operations described in the 2020 POD may not be completed because of the Coronavirus pandemic.”
The division approval said it “appreciates BP’s candor and recognizes the possibility that operations described in the PBU 2020 POD may not be completed during the specific POD time-frame due to the global (and by implication local) impact of the pandemic” and said it “assures BP of its support regarding any plan changes necessary to protect the health, safety, and welfare of operations personnel, the physical and economic integrity of the facilities, and preservation of the surrounding environment.”
The division is requiring written quarterly updates with the first due June 30.
The division said there are currently 254,235 acres in the Prudhoe Bay unit, with average ownership by BP, the unit operator, of 26.36%, ExxonMobil Alaska Production 36.4%, ConocoPhillips Alaska 36.08% and Chevron U.S.A. 1.16%.
BP reported average production of 165,030 barrels per day of oil and condensate in calendar year 2019, down from an average 174,200 bpd in 2018. The division said that production, combined with the Point McIntyre participating area, “reached full processing capacity for the facility.”
Natural gas production averaged 7,031 million standard cubic feet per day in 2019; natural gas liquids production averaged 43,600 bpd in 2019.
Work at Prudhoe The division said that in the 2019 POD period “BP completed 316 rate-adding jobs, and approximately 564 non-rate adding jobs” with rotary and coil tubing drilling resulting in 27 new wells. The 2020 plan proposed merging 2019 3D seismic with 2015 North Prudhoe Bay survey; more than 300 rate adding well work jobs and 500 non-rate adding jobs; four to seven rotary wells; 15-20 coil tubing sidetracks; maintenance and upgrades to numerous surface facilities. Following a positive COVID-19 test at Prudhoe, announced March 31, BP said all non-essential activity on the Slope was eliminated and development drilling was ended for 2020.
Other approvals In other recent POD approvals, for ConocoPhillips Alaska’s Colville River unit (see story in May 24 issue) and Hilcorp Alaska’s Ivan River, Lewis River and Pretty Creek gas fields (see story in May 17 issue), the division said those plans were received before disruptions caused by the Coronavirus pandemic, and also assured those companies it would work with them in any plan changes necessary to protect health, safety and welfare of operations personnel, physical and economic integrity of facilities and preservation of surrounding environment.
ConocoPhillips announced April 7 that it was demobilizing its rigs on the North Slope, ending both its winter exploration drilling and development drilling at the Colville River and Kuparuk River units.
Division activity maps updated in mid-May show Hilcorp continuing to operate two rigs at Milne Point on the North Slope and one rig in Cook Inlet.
|
