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Eni files 15th POD for Nikaitchuq unit
During first nine months of 14th POD that will end Sept. 30, Eni drills several wells, adds six-well shelter at Spy Island
Kay Cashman Petroleum News
The proposed 15th plan of development, or POD, for the Nikaitchuq unit was submitted to Alaska’s Division of Oil and Gas on July 6 by Eni US Operating Co. Inc. as operator, on behalf of its affiliate Eni Petroleum US LLC, owner of 100% of the working interest in the North Slope Nikaitchuq unit.
During the first nine months of the 14th POD period, which runs from Oct. 1, 2021, through Sept. 30, Eni has already accomplished most of what it committed to, including the drilling of several wells and the commissioning and startup of an additional six-well shelter at its Spy Island Drillsite.
North of the Kuparuk River unit, the Nikaitchuq unit was formed in April 2004, with Eni joining the unit in 2005 and becoming 100% working interest in 2007. (Eni was brought to the North Slope by a Bill Armstrong company, which spearheaded drilling at Nikaitchuq.)
The unit’s Schrader Bluff participating area was approved effective Jan. 1, 2011, and commenced sustained production on Jan. 31, 2011.
The existing unit area covers approximately 21,200 acres encompassing 11 state oil and gas leases. Production is from two drilling locations, the Spy Island Drillsite and the Oliktok Point pad.
Production is processed at the Oliktok Point pad, or OPP. Cumulative oil production from the Nikaitchuq unit was 71.2 million barrels through May 31, 2022.
The Nikaitchuq unit’s operating agreement’s automatic 10-year contraction had been extended by the division until Sept. 30 of this year.
Accomplished in 14th POD During the first nine months of the 14th POD period, Eni reactivated the infill drilling program at the Spy Island Drillsite, or SID, with the addition of three water injection wells, of which two have been completed, SI02-SE6 and SI15-E1, and one, SI41-E3, is planned to be completed in August.
Two dual lateral oil producers, SP09-E2 and SP40-E4, and one additional lateral in existing oil producer SP03-NE2 L2 were completed. The SI15-E1, SP09-E2, SI41-E3, and SP40-E4 wells are associated with the northeast extension added to the original development plan.
To date, 56 development wells have been drilled and completed within the Nikaitchuq unit, including 31 oil producers (11 OPP, 20 SID) and 25 injector wells (eight OPP, 17 SID).
Additionally, dual lateral wellbores have been completed in 27 producer wells (eight OPP, 19 SID).
In the 14th POD period, one inactive development well, OP19-T1N, was drilled and completed to test the potential of the N sand development. Additionally, two disposal wells (one OPP, one SID) and three Ivishak water source wells (three OPP) are active in supporting operations.
Major capital projects included commissioning and startup of an additional six-well shelter at SID, allowing for additional drilling and production in 2022.
The electrical power sharing project was funded to interconnect the Oooguruk and Nikaitchuq power generation systems to allow more robust and efficient power sharing between the two Eni-operated fields. Engineering is in progress, with startup scheduled for summer 2024.
Eni also racked up several more accomplishments in the 14th POD period.
And finally, with the reduction of COVID-19 impacts, Eni’s corporate office visited the site for several audits and assessments during the period. Notably, an energy assessment audit, operational assessment, biodiversity review and logistics audit were performed. Findings and recommendations will be implemented in the 15th POD period.
Reservoir management Subsurface development of Nikaitchuq’s Schrader Bluff participating area is ongoing with dedicated development wells in the Alaska Oil and Gas Conservation Commission-approved Nikaitchuq Schrader Bluff oil pool.
AOGCC issued pool rules for the reservoir and an area injection order authorizing the injection of fluids for enhanced oil recovery.
The primary recovery mechanism for the field is waterflooding. Producers and injectors have been drilled in side by side pairs and completed with horizontal drains in the OA sands.
Oil producer and water injector targets are defined based on historical producer-injector water flood responses, pressure trends, ESPs constraints and well integrity limits.
On Oct. 22, 2019, polymer injection was initiated in the Oliktok Point I-2 (OP-I2) well for a one-year test to determine the effectiveness of polymer injection for improving recovery.
The test was cut short after 154 days due to logistical issues resulting from the COVID-19 pandemic. The shortened test period resulted in inconclusive test results and the polymer injection pilot was shut down in March 2020 but resumed at OP-I2 well in April 2021 and extended until Dec. 31, 2022.
Depending on the results of this pilot test, a feasibility study will be carried out to evaluate a full field implementation and the required surface modifications of the existing network facilities.
Observed field oil production and water cut were in-line with Eni’s reservoir model expectations. From Oct. 1, 2021, through May 31, 2022, oil production averaged 17,548 barrels of oil per day with 49,001 barrels of water per day (74% water cut) “and an average producing GOR of 147 SCF/STBO,” Eni said.
Water injection during this period averaged 80,035 bpd with a monthly average and cumulative voidage replacement ratio of 1.16 and 1.17, respectively. During May oil production averaged 18,562 bpd.
15th POD facilities plans During the Nikaitchuq unit’s 15th POD period from Oct. 1 of this year through Sept. 30, 2023, Eni said it plans to perform routine maintenance and mechanical integrity inspection of piping, equipment, vessels, tanks, and other safety systems in the field.
The company has several planned minor facility upgrades at OPP and SID.
Efforts will continue on cleaning and replacing inlet heat exchanger bundles to maximize heat to the processing system. Actions will be based on the heat exchanger analysis performed in the 12th POD.
An alarm management and rationalization study will be completed to reduce nuisance alarms in the OPP control room.
The OPP control room relocation will be progressed in engineering design during this period to provide additional information to support an ultimate management decision. The intent is to ensure control room staff and infrastructure are located in a safe location.
As previously mentioned, the electrical power sharing project to interconnect the Nikaitchuq and Oooguruk power will continue to move forward.
Follow-up action items will be addressed from the several internal corporate audits and assessments performed in 2022. Notably an energy efficiency audit, operational assessment and logistics audit will likely result in recommendations to decrease greenhouse gas reduction, increase compliance with corporate operational guidelines and further ensure the safety of all workers, the environment and infrastructure.
15th POD period reservoir management Reservoir management activities will continue in the Nikaitchuq unit’s Schrader Bluff participating area, the objectives being as follows:
• Maximize daily volumes and value by optimizing hydrocarbon production.
• Minimize risk exposure to key producing wells and maintain well integrity.
• Continue the polymer injection test at OPP through end of this year.
• Tracer sampling and interpretation in the OP-I2 polymer pilot area.
• Proactively define and develop mitigation plans related to water production.
• Proactively acquire reservoir performance data critical to reservoir management and overall recoverable volumes determination.
• Ensure timely execution of reservoir surveillance plans, workovers, re-completions, and infill drilling.
• Update current reservoir simulations and studies to reproduce the field behavior.
• Find cost-effective solutions to optimize the production.
During the 15th POD period, Eni plans to work with the division to submit an application to expand the Schrader Bluff PA to be consistent with current and ongoing development plans.
Following completion of the expansion the Schrader Bluff PA “will better reflect tract participations consistent with ongoing production, costs and future development providing appropriate allocations of unitized substances produced and unit expenditures,” the company said in its proposed 15th POD.
15th POD period drilling The Nordic Calista Rig 4 is currently cold stacked. There are currently no plans for any new wells at OPP; however, it is anticipated the rig will be warmed up in January 2023 to conduct workovers, to be determined, in order to restore, sustain and increase Nikaitchuq production.
The Doyon 15 rig remains active at SID and plans are to drill three new wells and one lateral as summarized below:
• SP42-E2 (producer dual lateral) - start in August during the 14th POD and finish the well in October 2022.
• SI43-E3 injector) - planned to be drilled and completed in fourth quarter of this year to complete the northeast extension program.
• SP05-FN7 (second lateral) - tentatively planned to be added in fourth quarter of this year.
• Drilling of SI44-S5 (injector) - planned in first quarter of 2023 to replace OI15-S4 which has been suspended due to a mechanical failure during the March 2022 rig workover to replace the tubing.
Currently no workovers are planned on SID; Eni said in its July 6 POD application. However, the need for well interventions will be evaluated on an ongoing basis.
Editor’s note: See related story on the fate of the Nikaitchuq North prospect in this issue of Petroleum News.
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