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Providing coverage of Alaska and northern Canada's oil and gas industry
December 2024

Vol. 29, No.49 Week of December 08, 2024

Division approves Western Satellites POD

Kristen Nelson

Petroleum News

The Alaska Department of Natural Resources' Division of Oil and Gas has approved the 2025 Prudhoe Bay unit Western Satellites participating areas plan of development from Prudhoe operator Hilcorp North Slope.

The Nov. 26 approval covers Jan. 1 through Dec. 31, 2025.

The Western Satellites include five participating areas: Aurora, Borealis, Midnight Sun, Orion and Polaris. Aurora, Borealis and Midnight Sun produce primarily from the Kuparuk River formation, with Orion and Polaris producing higher viscosity Schrader Bluff formation oil.

In the 2024 Western Satellites POD, Hilcorp committed to 19 wells, but drilled only one with an additional four planned for completion before the end of the 2024 POD period. "Hilcorp deferred the remaining 14 wells for the Initial Participating Areas, which consists of the Oil Rim and Gas Cap PAs," the division said. Workover operations completed included two recompletes with four more pending prior to the end of the POD period.

The 2024 POD also included phase 1 construction of the EWE LDF twin pipeline, planned to begin in 2024 and continue into 2025. The division said the pipeline "work will lead to debottlenecking production and allowing additional wells to be put back into service."

An evaluation of GC2 Bank Slugcatcher retrofit was also included in the 2024 POD, but the division said "Hilcorp deferred the slugcatcher retrofit as it was evaluated and determined to not be necessary."

2025 POD

In the 2025 POD Hilcorp North Slope committed to seven wells in the Western Satellites PA, with another eight possible "depending on rig availability and priority of wells within other areas of the PBU." The division said Hilcorp would need to notify the division -- and may need to submit an amendment to the POD -- if it anticipates a change in the 2025 commitments.

One well has been identified for recompletion, but more may be recompleted or worked over "pending necessity and rig availability," the division said.

Completion of phase 1 of the EWE LDF twin pipeline is planned for 2025, along with GC2 inter-stage vessel installation, GC2 LPS compressor bundle upgrade and gas conditioning upgrades and GC2 A Bank vessel internal upgrades.

--KRISTEN NELSON






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