Exxon Mobil, ConocoPhillips announce North Slope drilling projects, contracts
Published Tuesday, July 15, 2008
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Stumble It!FAIRBANKS -- Three major oil and gas companies on Monday announced advancements in their plans to make oil and gas flow from Alaska’s far north.
While BP started seismic studies on a high-potential, offshore oil field, ConocoPhillips said a new oil field is producing earlier than planned and Exxon Mobil announced contracts for advance work at Point Thomson.
Even though Exxon and the state are involved in a dispute over the Point Thomson leases, the company awarded contracts to two Anchorage companies.
Nanuq Inc. and Alaska Frontier Constructors Inc. will build and maintain nearly 50 miles of ice roads and an airstrip needed to transport a drilling rig and other materials to Point Thomson. In addition, Exxon said barges have been contracted to move equipment to the project site and orders are in for long-lead materials. Drilling is planned to start this winter.
Exxon said the work on the first well is part of a multi-well drilling program submitted to the Alaska Department of Natural Resources earlier this year. State Commissioner Tom Irwin rejected the company’s development plans. A judge ordered reconsideration, and Irwin upheld his first decision, prompting a second formal review by Exxon. The matter was turned over to a state Superior Court in June, with a ruling anticipated this fall.
Plans call for production of 200 million cubic feet per day of natural gas in the initial phase. About 10,000 barrels per day of liquid condensate would be separated from that gas and shipped through new and existing oil pipelines. The rest of the gas would be re-injected into the reservoir to maintain pressure needed to make the wells produce.
Exxon is the largest leaseholder on the unit and is the operator. BP Exploration Alaska, Chevron USA and ConocoPhillips Alaska are also major owners. Another 23 companies own a small percentage.
Also on Monday, ConocoPhillips said oil production at the Qannik field has started two months ahead of schedule.
The field in the North Slope region is a joint venture between operator ConocoPhillips, with 78 percent field ownership, and Anadarko Petroleum, with 22 percent ownership. Peak production next year is expected to reach 4,000 barrels of oil per day.
Community Discussion
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Good news! Fairbanks, will boom! :-)
"Tom Irwin rejected the company’s development plans."
Really? On what basis? And why is it that all we hear from the governor and her flunky water carriers is how the lease holders don't want to develop anything? Why aren't we allowed to know what was "wrong" with the producers' development plan? I wouldn't trust the Palin administration to decide on anything beyond what's for lunch. Work on those plans should already be under way.
Exxon knows what it is doing--the oil at Point Thompson is worth a heck of a lot more now then it was 20 years ago. They just sat back and waited.
After 30 years of the oil companies submitting work plans they never followed up on......And the state of Alaska government and governors buy every word of it for 30 years..... now they want to move on the project after Gov Palin and staff have pulled the leases? Now?? I wish someone between 1958 and now had the balls Sarah has to do this.
30 years of Oil Companies submitting plans they never followed on? I assume that most here aren't familiar with North Slope Operations?
I can't speak for the "Eastern" side, but I know that the Western slope had developed. You all do realize that Prudhoe Bay is just a percent of North Slope production correct?
The Kuparuk Field developed in the 80's, and continued massive expansion through the 90's and today.
The Alpine Field came on line in 2000, and since then have developed the Nanuk, Fjord, and now Qaniik field, (2002, 2006, 2008).
The Kuparuk and Alpine fields prodcuce approx 400,000 bbl's per day.
BigMike-
The amount of development in recent years is less then should have been done? Perhaps we need to draw a line between BP and ConocoPhillips here then.
CPAI has spent Billions in recent years, (last 8) on the "Western" side. The Alpine original field, and along with CD1 cost over 2 billion.
Since then.....
"CD2" was brought on line in 2003, (500 million or so)
Nanuk and Fjord brought on line in 2006 (near a billion)
And as mentioned Qaniik was just brought on line this week.
"CD5", "CD6", "CD7", are all fields ConocoPhillips is in the pricess to complete permitting and begin construction.
If we are going to pick at the Oil Companies for lack of expansion, let's be specific, and also know what we are talking about.
So specifically BigMike, you can tell me the exact amout of exploration work done on the Western North Slope the last 10 years?
You do realize that each of the "CD's", or Drillsites I mentioned above were all explored recently, (the last 10 years or so). The lack of exploration happened from 84 or so to 95. Since then it's pretty much been boom.
If you going to be making points, at least bring something valid to the discussion. One thing I can't stand is misinformation or ignorance on the subject.
BigMike-
Sorry, I jumped the gun on this one. You were being specific to the lats 2-3 years on exploration? You really don't have a clue as to what goes on the North Slope then do you?
Rick?
I just picked up that you must be talking about Rick Solie. I've only met him on a few occasions, I understand his job, and hope that he does it to the best of his ability.
I simply am one of those people who has to explain to his chrildren every month as to why I am always "away". In the last 18 years i've spent more time on the slope then I have at home. One of the reasons is that I hope I can help provide with a decent future for the next generation.
If you would like to meet one day, grab a cup of coffe, I could pretty much consume your whole afternoon as to how I think Conoco and BP could imporove as to operating in Alaska. I think we do the best we can, but need to find ways to do better.
But one of those concerns would NOT be with recent exploration.
BigMike-
You do realize that BP operates the "Eastern" side, and ConocoPhillips operates the "Western" side.
Once again, I truly have to question your knowledge on the subject if you think exploration has been lacking the last few years, (or even 10 for that matter).
And yes, there has been ALOT of exploration the last 2 or 3 years.
BigMike-
I won't get into detail here, but feel free to contact me at my email address associated with this account. And like I said, there are always ways the operators on the North Slope can improve business. I don't speak for ConocoPhillips, nor work in the PR dept, i simply am a average Alaskan like yourself with an opinion based on observation.
The fields that have been brought online are essentially to help limit decrease in production.
As far as exploration, in 2007 there were 13-17 new locations drilled, to my knowledge that is the biggest increase in exploration in many, many years.
The trend the last 5-10 years has been a huge increase in exploration.
But you must remember one thing, exploation means nothing, prodcution of those fields means everything. And THAT is the point that has to be looked at.
BigMike-
Please list your references to this. In the 2008 drilling season, ConocoPhillips had bare minimum 3 drill rigs dedicated to exploration. We actually had to bring in a extra rig from the Eastern side, (along with Doyon 19) to help support this effort.
Your completely wrong on this.
Exxon playing MBA games and kitchen lawyering after many, many, repeated chances. Several years too late, well after high prices, and Exxon still does not address gas recycling for maximum recovery. If Exxon was interested in doing right for the state on maximum oil and gas recovery, it would have started drilling by 2004, after the clear rise of prices, and started the long term oil production with recycling of dry gas to remove the retrograde condensate first. 2006 came and went, not even a spud, SOL.
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