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Hilcorp continues looking at NTBU issues
Will study whether economics work to return Spurr Platform to service; substantial improvements, new equipment would be needed Kristen Nelson Petroleum News
Hilcorp Alaska has filed its 2025 plan of development for the North Trading Bay unit with the Alaska Department of Natural Resources' Division of Oil and Gas. There is currently no production from NTBU.
For its 2025 POD, covering May 3, 2025, through June 30, 2026, Hilcorp said it will continue working to restore NTBU production.
"The preliminary platform assessment completed in 2024 identified that the Spurr platform may be economically viable to return to production; however, the platform will require substantial improvements: new quarters, crane, production processing equipment, environmental remediation in existing well modules and more will be needed to support production reactivation," the company said.
The proposal for the 2025 POD is that the company "perform a detailed engineering assessment to fully understand the scope, secure cost estimates and define the timeline needed to restore production," with engineering assessment results "used to further evaluate the economics of production restoration from the Spurr platform."
Hilcorp said it expects to complete the economic analysis during the 2025 POD.
Previous PODs Hilcorp's 2021 POD was conditioned on drilling a sidetrack, Trading Bay St A-10RD2, from the Monopod Platform in the Trading Bay unit into leases within the NTBU boundary, but the 2022 well encountered mechanical issues; a second attempt at a sidetrack also encountered mechanical challenges.
In 2022 Hilcorp told the state that it would redesign the sidetrack and in 2023 began drilling the A-10RD3. That well, Hilcorp said, reached 11,088 feet measured depth "when the 4-1/2" drill pipe parted in a wash out at a coal at 6,970' MD." The company said drill pipe and bottom hole assembly were left in the hole; the well was suspended with a cement plug.
"The repeated failures indicated further assessment was necessary to ascertain the development potential for the unit. The subsurface complexity of crossing two large faults with greater than 1000 foot throw and drilling at a shallow angle through packages broken by coal seams significantly reduced the probability of successful drilling," the company said.
No drilling was proposed in the 2024 POD
The company was required to provide a plan of refurbishment and annual inspection reports, which it requested the division to keep confidential, and was required to submit data on reserves and operational plans and designs to re-establish production.
Spark, Spurr integrity Hilcorp ordered inspections of the structural integrity of both the Spark and Spurr platforms and included a report on those inspections in its POD.
In both cases, Hopper Engineering Associates found the platforms to be overall in good condition. Both are classified as "manned evacuated" in that they technically have living quarters, so personnel could be on board, but the platforms are generally unmanned.
The inspection found "likelihood of collapse" to be low as inspection noted minimal subsea damage, and inspections every 10 years were recommended.
Well plugging & abandonment Hilcorp said it is committed to maintaining the plugging and abandonment schedule authorized by the Alaska Oil and Gas Conservation Commission, and said according to the schedule Spark and Spurr platform work will occur beyond the 2025 POD period.
The company said priorities of the P&A program are the Baker and C platforms, both in the recently terminated Middle Ground Shoal unit, with that work delaying Spark and Spurr P&A work into 2026 or later.
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