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Satellite explosion ConocoPhillips says as many as 10 more satellites possible within 30 miles of Alpine; there could be standalone facilities at Kuukpik, NPR-A Kristen Nelson PNA Editor-in-Chief
ConocoPhillips Alaska Inc. has submitted an environmental impact statement proposal to state and federal agencies for the development of five satellites to its Alpine facilities in the Colville River unit on the northwest North Slope (see sidebar). In supporting documentation the company said as many as 10 additional satellites feeding back to Alpine within a 30-mile radius are possible, as well as standalone processing facilities in the National Petroleum Reserve-Alaska and at Kuukpik, which is northeast of the Colville River unit.
And, should a gasline be built from the North Slope, ConocoPhillips said gas processing facilities and a gas pipeline from NPR-A are also possible.
The company provided little more than a “heads up” on the possible additional satellites and standalone projects telling agencies that it is likely that more discoveries will be found and proposed for development, both within the Colville River unit and in the northeast NPR-A.
Three possibilities Three types of discoveries could lead to future development, the company said: “(1) additional satellite oil discoveries that flow back to Alpine for processing; (2) oil discoveries with stand-alone processing; and (3) natural gas discoveries and the associated pipeline.”
Additional exploration and delineation drilling are necessary for such discoveries, the company said.
Potential future development of satellites would be similar to those now proposed, with gravel roads, pads and airstrips, and pipelines taking production to Alpine for processing.
“At this time it is estimated that up to 10 such satellite discoveries, in addition to the five discussed in this document, may be developed in this manner. The precise location of these discoveries is not known at this time but would generally be within 30 miles of Alpine due to engineering constraints,” the company said.
It is also possible that large enough reservoirs may be found the justify standalone facilities, ConocoPhillips said. “The location and details of such a facility are not known at this time but would likely be similar to Alpine.” Such a facility could have its own satellites.
“Although this scenario is not being proposed for any location at this time, with continuing exploration activity in the NPR-A it is possible that such a facility could be constructed in the future, most likely beyond the 30-mile radius around Alpine,” the company said. The third category of project is gas: if there were a gas pipeline from the North Slope, “gas reserves in the NPR-A may be developed to provide gas for this pipeline. In such a scenario, gas processing facilities and pipelines could be constructed in the NPR-A.”
ConocoPhillips included a map which “depicts a cluster of both (1) announced discoveries within the former Kuukpik unit approved by the state of Alaska, and (2) the surface locations in the CRU and Northeast NPR-A” where the company “has drilled an exploration well since 1999 or has permission to do so in the next few years.”
The Kuukpik area leases are in the Beaufort Sea at the mouth of the Colville River, adjacent to leases where Pioneer and Armstrong are drilling their Kuparuk Northwest prospect this winter. The Kuukpik unit was terminated in 2001, after Kuukpik unit operator Phillips Alaska Inc. notified the state that it would not commit to drill a well in the unit before June 1, 2002, as required by the third plan of exploration for the unit. Six leases are held with certified wells: ADL 355036, ADL 355037, ADL 355038, ADL 355039, ADL 365577 and ADL 365578. Pioneer Natural Resources Inc. is drilling the Ivik well this winter season on the lease just west of ADL 355036, and the Oooguruk on the lease just to the north of ADL 355036. Pioneer and Armstrong Resources LLC, which developed the drilling prospect, are working what they call the Kuparuk Northwest prospect.
Fiord and Nanuq under review ConocoPhillips began permitting the two Colville River unit satellites, Fiord (Colville Delta North) and Nanuq (Colville Delta South) in 2000. In 2001 the company announced several discoveries of oil and gas accumulations on its leases in the northeast planning area of NPR-A and west of the Alpine facility. “Additional information has since been gathered from the NPR-A discoveries” the company said, and it “is now in the process of determining the commerciality of these prospects.”
The three NPR-A prospects under evaluation are Alpine West, Lookout and Spark, all within approximately 20 miles of the Alpine central processing facility.
There are two sites operating at the Colville River unit now, CD-1 and CD-2. Proposed drilling site names for the satellites are: CD-3 (CD North, Fiord); CD-4 (CD South, Nanuq); CD-5 (Alpine West); CD-6 (Lookout); and CD-7 (Spark).
ConocoPhillips said the proposed Lookout (CD-6) and Spark (CD-7) satellites are on federal lease tracts owned by ConocoPhillips and Anadarko Petroleum Corp. The proposed Alpine West (CD-5) satellite is on lease tracts the partners own on Native land within NPR-A. CD North (CD-3) is on state-owned surface; CD South (CD-4) is on Kuukpik Corp. owned surface. The state and Arctic Slope Regional Corp. have subsurface ownership at CD-3 and CD-4.
CD North would include a standalone drilling pad connected to an airstrip and apron-taxiway by an access road. Access to the pad would be from Alpine by small aircraft or helicopter to the all-weather gravel strip.
ConocoPhillips said a winter development drilling program at CD North would “avoid impacts to wildlife and subsistence activities during summer months.” Three to five winter drilling seasons would be required to drill up to 32 wells; a relief rig would require access via ice road. The drilling rig would be moved before break-up for use elsewhere during summer months.
The CD South (CD-4) satellite would include a gravel pad and a 3.6 mile all-weather gravel road to Alpine. Up to 32 wells would be drilled “on a scheduled that includes a seasonal compliment to the proposed CD North (CD-3) program,” the company said. Pipelines from both satellites would connect to existing Alpine facilities.
NPR-A satellites ConocoPhillips said “the NPR-A satellites are in the early stages of planning” to all estimates of gravel volumes and lengths of roads and pipelines are approximate. Utility lines — power and communication — would be suspended on vertical support members or buried in the gravel road. Local power generation may be used at Lookout (CD-6) and Spark (CD-7).
“The satellites would be services and maintained by crews based at Alpine, and 20 to 30 wells would be drilled at each location.”
Alpine West (CD-5) will be in section 8 of township 11 north, range 3 east, Umiat Meridian, on Arctic Slope Regional Corp. oil and gas lease NPR1. CD-5 would be approximately six miles south-southwest of Alpine and west of the Nigliq Channel of the Colville River. ConocoPhillips said one Alpine West exploratory well was drilled from the CD-2 pad in 2001.
The CD-5 satellite would include a gravel pad and a three-mile all weather gravel road and vehicle-capable bridge across the Nigliq Channel, beginning near CD-2 on the existing gravel road that connects CD-2 with Alpine. Lookout (CD-6) would be on BLM oil and gas lease AA081819 in section 25 of T11N-R2E, UM, and would include a gravel pad and an all-weather gravel road, approximately 10 miles, connecting to Alpine West (CD-5).
Spark (CD-7) would be on BLM oil and gas lease AA081802 in sections 16, 17, 20 and 21 of T10N-R2E, UM, and would include a gravel pad and a six-mile all-weather gravel road connecting to Lookout (CD-6).
Timeframe ConocoPhillips said the satellites “may be constructed simultaneously or independently.” Under a typical schedule, the company said, “construction of an ice road, the access road, drilling pad and pipelines would be completed in the first and second winters after permit approval for each individual satellite.”
After gravel is placed, development drilling and workover operations “would continue intermittently throughout the life of the field.”
Construction and final road compaction and grading and some facilities installation would occur in the third year and final installation of facilities, pipeline, utilities and oil production start-up would begin in the third year.
The company does not provide an estimate for pre-construction, which includes environmental studies, permitting and engineering.
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