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Santos subs. Oil Search (Alaska) to plug and abandon Placer wells
Kay Cashman Petroleum News
On Oct. 21, the Alaska Department of Natural Resources' Division of Oil and Gas sent Oil Search (Alaska) LLC's senior permitting and environmental manager, Patrick Conway, approval to plug and abandon Placer wells 1 and 3 in the Quokka unit. The approval was a plan of operations amendment decision that was submitted by Oil Search (Alaska), or OSA, on Sept. 16.
OSA, a subsidiary of Santos Ltd., is the operator of the Quokka unit, which lies adjacent to the Southern Miluveach unit (Mustang), Kuparuk River unit and the Pikka unit.
OSA formed the Quokka unit in June 2022. It encompassed leases committed to the Placer unit. OSA will construct ice roads and pads to access the site and support P&A operations of Placer 1 and 3.
A coil tube unit, a slick line unit, hot oil pump trucks and cement pump trucks will be used to complete P&A work on the two wells.
A rig is not expected to be required but will be utilized to complete operations if necessary.
P&A activities will include cementing well components per regulatory requirements, cutting off the well head, removal of the cellar and conductor, capping the casing and restoring the surface to natural grade.
All operations will be conducted from the ice infrastructure using temporary buildings and equipment. Pre-existing camps and support facilities located in the Pikka unit will be used as necessary.
All fuel and hazardous substances transported to the site will be stored in containment, and any solid waste generated will be removed as it is generated and transported off site to the Pikka Grind and Inject Facility or another approved disposal facility.
The plugging and abandoning of Placer 1 and 3 is scheduled to begin Nov. 1. All ice infrastructure will be authorized under LAS 33903.
Plan activities Plan amendment activities include the following:
--Construct ice roads and pads.
--Plug and abandon Placer wells.
--Demobilize equipment and clean the project area.
--Summer survey to clean any remaining equipment or debris.
The Placer wells are located approximately 16 miles northeast of Nuiqsut at Meridian: Umiat Township: 12 N Range: 7 E Section: 33 70.346394, -150.39538844 NAD83.
The ADLs involved are 391913 and 391027.
The Division of Oil and Gas provided a review and comment opportunity for the activities considered for the authorization under this decision. The following government entities were notified on Sept. 26, for comment on the Plan: U.S. Army Corp of Engineers, Alaska Department of Environmental Conservation, Alaska Department of Fish and Game, Alaska Department of Natural Resources' Division of Mining, Land, and Water and the North Slope Borough. The comment deadline was 4:30 pm Alaska time on Oct. 10.
No comments were received.
Placer well history ConocoPhillips Alaska drilled the Placer 1 well, which targeted the Kuparuk, in 2004. The well logged oil in the Kuparuk C, but it was not flow tested.
Placer 1 was suspended in 2004. The Placer acreage was acquired by ASRC Exploration in 2011.
The Placer 3 well was drilled in 2016 by ASRC to evaluate the Kuparuk C in the Placer unit. Sidewall cores were taken in the Kuparuk, and the Kuparuk interval was successfully flow tested, reaching an average rate of 815 barrels of oil per day.
Immediately after suspending Placer 1 in 2004, ConocoPhillips drilled the Placer 2 well, which also targeted the Kuparuk interval. This well did not find high quality reservoir and was plugged and abandoned.
The state terminated the Placer unit in mid-2019, just a few weeks after Arctic Slope Regional Corp. put the prospect on the market. The move followed years of debate between the state and the corporation over the appropriate boundaries of the small unit.
Arctic Slope Regional Corp. eventually sold the unit to Oil Search (Alaska) in March 2021.
--KAY CASHMAN
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