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Latest decisions from Alaska's Division of Oil & Gas, Pikka etc.
Kay Cashman Petroleum News
On Sept. 10 the Alaska Department of Natural Resources' Division of Oil and Gas approved the Pikka Unit expansion requested by unit operator Oil Search (Alaska) LLC, a subsidiary of Santos Ltd.
The Division received the application for the expansion of the Pikka Unit, or PKU, on March 29.
The initial PKU included 77,743 acres. The proposed and approved PKU expansion area covers approximately 19,641acres.
"A unit must encompass the minimum area required to include all or part of one or more oil or gas reservoirs, or all or part of one or more potential hydrocarbon accumulations," the Division said in its decision that was signed by Division Director Derek Nottingham.
Oil Search, he said, has submitted confidential geological, geophysical, and engineering data which demonstrate that the area approved for expansion includes all or part of an oil reservoir and potential hydrocarbon accumulations.
The Division found that the expansion of the PKU, promotes conservation of all natural resources, promotes the prevention of economic and physical waste and provides for the protection of all parties of interest, including the State. The effective date of the PKU expansion is Sept. 10.
Smith Bay Unit On July 15, the Division received from Smith Bay Company Alaska Inc. a request and application to suspend the unit plan of exploration commitment for the Smith Bay Unit, or SBU. The application included a request for rent reduction in the SBU during the period of suspension.
On Sept. 4, the Division approved the suspension of the exploration commitment and denied the request for rent reduction.
Oooguruk Unit On Aug. 27, Angela Wiese of ENI US Operating Co. Inc. received a letter approving the Oooguruk Unit 2024 Plan of Development, or POD.
The letter, which was sent by certified mail, said that on June 28 the Division received the proposed 2024 Oooguruk Unit, or OU, Initial Plan of Development from ENI. Then on July 17 ENI submitted a revised proposed 2024 OU POD.
ENI provided a technical review to the Division on Aug. 13.
Per the approved POD ENI is set to resume drilling activities in Q3 2025 and plans to drill two new wells, ODSN-05 and ODSN-09, with production starting in 2026.
Additionally, ENI will undertake a rig workover on the disposal well ODSDW-44. ENI also will carry out routine maintenance like that performed in 2023, while continuing to advance the PGP and EPS projects.
If a sale of ENI's Alaska assets to Hilcorp is successful, then the work commitments are contingent upon approval by Hilcorp.
The Division will allow Hilcorp time to review and evaluate projects to conduct its due diligence, and Hilcorp will be required to submit the 2025 POD.
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