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Pikka unit Nanushuk project gets approval
Alaska’s Division of O&G gives Oil Search the green light for the development phase of its oil field west of the central North Slope
Kay Cashman Petroleum News
On Nov. 26, Oil Search Alaska received approval from Alaska’s Division of Oil and Gas for the development phase of its Pikka unit Nanushuk project’s plan of operations, for which the company filed its final paperwork on Nov. 1 The project is approximately 7 miles northeast of the community of Nuiqsut, west of the central North Slope.
The Nanushuk project will be targeting oil in the Nanushuk and Alpine C reservoirs, and include three drill sites (ND-A, ND-B and ND-C) with up to 151 total production and injection wells.
Infrastructure and facilities within the Pikka unit will include the Nanushuk processing facility, or NPF, infield pipelines, import and export pipelines, infield and access roads, a boat ramp, and a potable water system.
The project will also include facilities and infrastructure outside of the unit - those will be authorized under separate permits and include the Nanushuk operations pad, or NOP, a Tie-in pad, or TIP, and a continuation of roads and pipelines that are within the unit boundary.
Drill site ND-B will be used to initiate early production of at least 30,000 barrels of oil per day from the Nanushuk reservoir in 2022. Multi-phase liquids will be transported to the central processing facility 2, or CPF2, for processing in the ConocoPhillips-operated Kuparuk River unit.
In 2023 or 2024 the NPF will be operational and the early production phase will end. At this time sales-quality oil (peak of 120,000-130,000 bpd) will be transported to CPF2.
Drill sites and facilities Each drill site will have drilling equipment and support facilities, including well testing equipment, well stimulation equipment, drilling mud and cement tanks, production gathering facilities, diesel fuel storage tanks, a communication tower, cold storage, emergency response equipment and drilling laydown areas.
The drill sites will have heaters to heat production fluids prior to entering the pipeline to the NPF, as well as space for temporary camps.
The NOP will support fieldwide operations and include: a 200-bed operations camp; office, warehouse and maintenance buildings; warm and cold storage buildings; water and wastewater treatment plants; communications structures; back-up generators and fuel storage; and a helicopter landing pad. The NPF will include processing and utilities modules, metering and pigging facilities, power generation facilities, a truck fill station, construction material and equipment staging areas, and a central control room.
The NPF will have either a single flare or dual flares to support both high- and low-pressure safety relief systems. Additional temporary camps will be established to support construction and drilling activities. Off-site pioneer construction camps will be near the mine site on an ice pad or on an existing gravel pad, depending on available space.
The pioneer construction camps will be used until the construction camps are operational. Construction camps will be on one or more of the project gravel pads and will remain through the startup phase, after which they will be decommissioned and removed from the site.
Drilling support camps will be on each drill site. After completion of drilling, the camps will be decommissioned and removed.
Construction support ice pads will house field offices, break shacks, enviro-vacs and field shops, and will stage construction equipment, vehicles, materials and supplies until gravel pads are available.
Fuel, waste, water and gravel The project will require the transport of diesel and gasoline from Deadhorse to support activities during construction, drilling, and operations.
During construction, dedicated temporary storage areas for diesel and gasoline will be placed on ice pads and, once complete, moved onto the project gravel pads.
Permanent diesel fuel storage tank infrastructure will be on the NPF, NOP, and/or drill sites.
A range of wastes will be generated during construction, drilling, and operations; thus, a waste management plan will be prepared to address the types and quantities, regulatory controls and management options for solid and liquid wastes.
The project will require potable water for camp use and raw lake water for construction, drilling and operations.
Potable fresh water for domestic use at the construction camps will be trucked from Deadhorse or other existing facilities. The primary source of fresh water for the operations camp will come from Lake MC7903.
Non-potable fresh water from local permitted lakes will be used for ice road and pad construction and maintenance, and for possible hydrostatic testing of pipelines.
In addition, make-up water (likely seawater) will be needed for production and injection well stimulation. Pending commercial agreements and availability of supply, make-up water will likely be purchased from a third party.
Power generation facilities at the NPF will be gas-powered turbines. Power will be supplied to other project facilities, including drilling rigs, via power cables installed on infield and Nanushuk pipeline horizontal support members using messenger cables.
Communications between project facilities will be via fiber optic cables.
An estimated 2.86 million cubic yards of gravel will be needed to build project facilities. It will likely come from the ASRC gravel consolidated mine site and the North Slope Borough gravel mine site F.
Airstrips, roads and bridges No new airstrips will be built for the project.
During construction, drilling, and operations, the commercial airport in Deadhorse, approximately 52 miles away, will support air transport of project personnel and small materials and supplies. Personnel and materials flown into Deadhorse will be driven to the project area via the existing road system and ice roads until the gravel access road is finished.
The NOP includes space for a helipad. During construction, helicopters will be used to support ice road layout, survey and summer cleanup efforts. These activities usually take place in July or early August and last approximately four weeks, with daily helicopter traffic during that time. Helicopters may be used in the event of health or safety emergencies over the life of the project; however, routine helicopter use is not planned.
The project includes 13.3 miles of gravel infield roads to provide all-season ground transport, as well as the 9.2-mile gravel Nanushuk access road to connect the NPF to existing infrastructure.
Gravel roads will be 24 (approximately 44 feet at the base) to 32 feet (approximately 52 feet at the base) wide at the surface but may be wider at curves to accommodate larger module transport.
Six road turnouts (three along the access road, one along the ND-A road, one on the ND-B road, and one on the ND-C road) will be built for access to project facilities during movement of large equipment, including modules and drilling rigs.
Three gravel tundra access ramps will be built at road turnouts near NDA, ND-B and ND-C for off-road travelers.
Access and infield roads will accommodate two-way traffic.
The Nanushuk access road will follow the existing Mustang access road for approximately 4.7 miles. Use of that road will require upgrades to bring it up to minimum design standards and improve the road’s surface condition.
Gravel roads will parallel the pipelines for year-round access for maintenance, repair, monitoring and emergency response.
Two bridges will be built for the project: a 170-foot bridge for the access road over the Miluveach River and a 245-foot bridge for the ND-C infield road over the Kachemach River.
Drainage culverts will be designed for the infield and access roads prior to construction.
Ice roads will be used during pipeline, gravel road and bridge construction. Approximately 190 to 280 miles of ice roads are planned during the construction phase. Standard-duty North Slope ice roads will be built to support expected loads and protect the vegetation and organic soil beneath. Ice roads will be wide enough to safely accommodate two-way vehicular traffic (minimum of 20 feet), drill rig access (minimum of 30 feet) and other traffic, as required.
Other facilities and equipment Additional facilities and equipment include: a TIP, infield pipelines (connect the drill sites to the NPF), the Nanushuk pipeline (connects the NPF to existing infrastructure on the North Slope via the TIP), pipeline river crossings, the Nanushuk boat ramp and seasonal ice pads.
The Oliktok dock will be used for offloading sealift modules transported by barge to the North Slope.
The boat ramp will be built for launching and retrieving watercraft. This interface between the road system and the river will allow for support of Oil Search field operations, studies and emergency response as well as for community members to access traditional and subsistence use areas on the east side of the Colville River
Rehabilitation plan Upon completion of project activities and in compliance with permit and lease requirements, Oil Search will commence dismantlement, removal and rehabilitation, or DR&R, activities, which are generally expected to include: notification and coordination with Kuukpik Corp., the Alaska Department of Natural Resources, the North Slope Borough and other regulatory agencies to discuss specific DR&R requirements and timeframes; plugging and abandonment of wells in accordance with general industry best practices and compliance with Alaska Oil and Gas Conservation Commission requirements; development of a restoration plan that includes required elements identified by permitting agencies; dismantlement and removal of installed equipment and infrastructure, unless coordination with landowners or agencies indicates otherwise; and enactment of restoration activities identified in the restoration plan in accordance with goals and objectives identified in the plan.
Any areas of tundra damage will be identified and discussed with the landowner to determine appropriate remediation and restoration that may be required.
Buried utility installations that are not covered by gravel fill (i.e., the roadway) will be revegetated using transplanted sprigs, cultivars or seed either gathered onsite or otherwise obtained that match the native plant species in the vicinity of the trenched area.
Revegetation work will be done by the end of the first growing season following the utility installation and will be monitored in subsequent growing seasons. Additional efforts will be made until revegetation of the site is complete.
Jobs, training contracting Oil Search will be working with the borough, the city of Nuiqsut and Kuukpik Corp. to provide project job opportunities for area residents.
The company also intends to provide local North Slope companies the opportunity to compete for contract work pertaining to the project.
If needed, the company will assist in developing training programs for North Slope residents by working with contractors, trade associations, the Alaska Safety Alliance and Ilisaġvik College.
Oil Search and all other field personnel will be North Slope Training Cooperative trained.
Oil Search will always have trained staff on site that are familiar with project-specific subsistence, environmental, social and cultural concerns and will periodically provide awareness training and oversight to contractors and subcontractors as it pertains to their scope of work.
Editor’s note: See a map of the project in the pdf and print versions of this story.
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