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Nuna produces 1st oil ConocoPhillips Alaska North Slope project begins production on Dec. 17
Kay Cashman Petroleum News
On Dec. 19, ConocoPhillips Alaska released a statement to the press saying that its North Slope Nuna project achieved first oil under budget and ahead of schedule on Dec. 17.
The Nuna project is the 49th drill site developed within the Kuparuk River Unit, or KRU, and is the first drill site developed in the Greater Kuparuk Area in nearly a decade.
"From fabrication to first oil, the Nuna project's milestones belong to Alaskans. The Nuna module was the first production module like this fabricated in-state in more than two decades and demonstrates ConocoPhillips' commitment to Alaska. The fabrication took place right here in our backyard and was built by Alaskans," said Erec Isaacson, president of ConocoPhillips Alaska.
"Projects like Nuna create hundreds of in-state jobs, contribute to a stable local economy and demonstrate the remarkable resource development potential Alaska's legacy fields still have."
The Nuna project will add 29 development wells, on-pad infrastructure, and pipelines that tie back to existing KRU processing facilities. Drilling at 3T began in September and is expected to continue for the next few years.
Nuna is projected to boost Kuparuk's production in the coming years, reaching a peak rate of 20,000 net barrels of oil equivalent per day.
"We are thrilled to announce the first oil milestone from the Nuna project," said Michelle Bundy, Nuna Project Integration Manager at ConocoPhillips Alaska. "This achievement is a testament to the dedication and expertise of our incredible team. Delivered ahead of schedule and under budget, the project showcases our commitment to safety and execution excellence. We couldn't be prouder of the collaborative effort that made this milestone possible."
Year-to-date, ConocoPhillips Alaska has invested more than $2 billion in Alaska projects and will continue to invest about $1 billion each year to grow its Alaska legacy business with projects such as Nuna.
Background On June 1, 2023, ConocoPhillips Alaska announced that funding had been approved for developing the Nuna project from Drillsite 3T, or DS 3T, on the northwestern edge of the unit.
The company said development of Nuna through existing KRU facilities would minimize environmental impacts because "the tract owners will not have to build stand-alone processing facilities solely for the benefit of these areas."
At that time first oil was anticipated by early 2025, not mid-December 2024.
Two years earlier, on Aug. 14, 2019, Alaska's Division of Oil and Gas approved the 12th expansion of the Kuparuk River unit, incorporating 19,177.50 acres in Torok PA leases, effective June 1, 2019. Those leases had just been acquired via a purchase and sale agreement between ConocoPhillips Alaska and Caelus Natural Resources Alaska.
The Nuna prospect was originally associated with the Oooguruk unit but could be accessed from existing facilities at Oliktok Point, located within the Kuparuk River unit.
Based on an initial exploration program at Nuna in 2012, then-leaseholder Pioneer Natural Resources estimated ultimate oil recovery between 75 million and 100 million barrels of oil from the Torok formation of the Brookian sequence at Nuna. Caelus later estimated that Nuna could produce 25,000 barrels of oil per day over 20-30 years. (Pioneer discovered Nuna in 2012 and drilled two exploration wells before selling the prospect to Caelus in 2014. Caelus installed the pad.)
Caelus sanctioned a $1.4 billion Nuna development in 2015, underpinned by royalty modification from the state. But the company postponed the project because of economic concerns and ultimately sold the Oooguruk unit to minority partner Eni and the Nuna satellite to ConocoPhillips Alaska.
In mid-2021, ConocoPhillips announced the Coyote discovery east of Nuna. At the time, ConocoPhillips Alaska President Isaacson said Coyote was in the Brookian topset above the Nuna Torok discovery, describing Coyote as shallow, i.e. a Nanushuk play.
Drill site 3T is the new name for the expanded Nuna pad, which Pioneer built to support its Nuna work back in 2012 and 2013, when the project was still an Oooguruk satellite.
About the company According to its website ConocoPhillips Alaska has been a leader within Alaska's oil industry for more than 50 years. The company is committed to operating with the highest safety standards, responsibly developing Alaska's resources, promoting economic opportunity for Alaska, and being a valuable community partner. For more information, visit www.conocophillipsalaska.com.
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