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On Deadline: Northstar oil moves to TAPS
Kristen Nelson PNA Editor-in-Chief
Oil has begun flowing from the Northstar oil field in the Beaufort Sea off Alaska.
Interior Secretary Gale Norton and her senior advisor for Alaska affairs, Drue Pearce, announced first oil from the BP Exploration (Alaska) Inc. project Nov. 1.
Northstar thus becomes the first outer continental shelf development project since federal offshore leasing began in 1976 off Alaska, Interior Department officials said.
The Joint Pipeline Office told PNA that BP started oil flowing down the Northstar pipeline at 5 p.m. Oct. 31. JPO said BP anticipated oil arriving at pump station No. 1 at 6 p.m. Nov. 1.
"We're producing right now from a single well," BP spokesman Ronnie Chappell told PNA Nov. 1. He said the current rate is about 3,000 barrels a day, "and we will be ramping up production and bringing on another well when we think it's appropriate to do so."
Chappell said the production rate will climb over the next few days.
There are currently two producing wells, one injection well and one disposal well completed at Northstar. Production to peak at 65,000 bpd BP said production is expected to reach a peak rate of 65,000 barrels per day in first quarter 2002. Northstar reserves are about 175 million barrels. Gas re-injection is occurring from startup to maintain reservoir pressure and improve recovery.
BP holds a 98 percent working interest in the field. Murphy Exploration & Production Co., a subsidiary of Murphy Oil Corp., holds a 2 percent working interest.
BP acquired the leases at Northstar in 1995 and the following year the Alaska Legislature approved amended terms for the leases. In 1999, the U.S. Corps of Engineers issued a construction permit and later that year the state issued a right of way permit for the pipelines. Island construction began in the winter of 1999-2000; the first modules were installed in 2000 and the large process modules this fall. American oil "In the aftermath of the Sept. 11 terrorist attacks, Americans charged our government to strengthen national security. This is a positive step in that direction," Secretary Norton said. "True national security must expand conservation programs, reduce our dependence on foreign oil from evil dictators, such as Saddam Hussein, and create new jobs — all while protecting the environment."
"The successful completion of the Northstar project proves that by working together, federal and state governments and the energy industry can combine protection of the environment with cutting edge technology to bring America's energy resources safely to market," Pearce said. "We celebrate this addition to the U.S. energy supply and are pleased with the Department's involvement."
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