As reported in last week’s Petroleum News, Great Bear Pantheon spud its first North Slope production well on July 6. A horizontal long-term test well, Alkaid 2 marks the company’s possible transition from explorer to producer.
This week the Alaska Oil and Gas Conservation Commission, or AOGCC, shows these two “exploratory” wells as permitted by Great Bear Pantheon: Alkaid 2 and Alkaid 2 PH.
PH stands for pilot hole.
The Alkaid 2 PH is being drilled first as a vertical penetration of the Shelf Margin Deltaic, or SMD, through lower Alkaid intervals. Operator Great Bear Pantheon will subsequently come up-hole and kick off to drill the Alkaid 2 lateral through the target Alkaid interval.
Eklutna plant earns top tier safe workplace status
MEA’s power plant site, the Eklutna Generation Station, has been accepted into the Voluntary Protection Program, or VPP, through Alaska Occupational Safety and Health.
Approval in VPP provides official recognition of the outstanding efforts of employers and employees who have achieved exemplary occupational safety and health. Eklutna Generation Station is currently one of seven entities in Alaska to receive entry into VPP and is the first utility to receive this safety program recognition.
The process to qualify for VPP took approximately two years and included a rigorous onsite evaluation by a team of four safety and health professionals. Throughout the qualification process MEA employees, IUOE-Local 302, and AKOSH worked proactively to prevent injuries, illnesses and fatalities through a system focused on hazard prevention and control, worksite analysis, training, and management commitment and worker involvement to workplace safety.
A formal recognition ceremony was held in early July at the Eklutna station and was attended by state and local leaders as well as the commissioner of the Alaska Department of Labor and Workplace Development, Dr. Tamika Ledbetter.
“This is a big deal, the entrance of MEA into the Voluntary Protection Program,” said Ledbetter at the ceremony. “Oftentimes safety is relegated to one section or one department head, but what you have shown is that safety is the responsibility of every individual that works here.”
MEA’s CEO Tony Izzo also recognized MEA employees for their hard work at the ceremony. “I have a lot of pride in the team here,” said Izzo. “This honor has been two years in the making and required a focused effort and a commitment to safety individually and as a team.”
As a VPP recipient, Eklutna Generation Station will not be subject to random enforcement inspections for a period of two years.
Safety begins in MEA’s mission statement: to provide safe reliable energy at reasonable rates with exceptional member service and commitment to the community we serve, the company said in a press release, noting that in 2021, more than 4,900 hours were dedicated to safety training among MEA employees.
ConocoPhillips commits to leading methane performance
On July 14, three U.S. oil and natural gas producing companies, ConocoPhillips, Pioneer Natural Resources and Devon Energy jointly announced that they have joined the Oil and Gas Methane Partnership (OGMP) 2.0 Initiative. The initiative’s mission is to improve the industry’s transparency in methane emissions reporting and encourage progress in reducing those emissions.
The companies said membership in OGMP 2.0 demonstrates their commitments to reducing methane emissions and meeting U.S. and global energy demand with reliable and responsibly sourced production.
“OGMP 2.0 has emerged as a global gold standard for methane emissions measurement and reporting. The initiative’s reporting framework will provide stakeholders with the assurance that this important greenhouse gas is being managed responsibly,” the companies said.
In turn, participating companies will be provided with the means to credibly demonstrate that they are contributing to climate mitigation and delivering against their methane improvement objectives and targets.
“Reducing greenhouse gas emissions, including methane, is an important priority for ConocoPhillips, and we are pleased to join industry members and stakeholders to advance this important area of emissions management,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “We believe that applying the rigorous OGMP 2.0 reporting standard across our global assets will be a vital step on our path to net-zero operational emissions by mid-century.”
“With Pioneer, Devon and ConocoPhillips joining OGMP 2.0, we have significantly increased the participation of U.S.-based companies,” said Giulia Ferrini, OGMP 2.0 manager at UNEP. “We hope their membership encourages others to join this global effort aimed at improving methane emissions measurement and transparency, thereby supporting the goals of the Paris Agreement and the Global Methane Pledge.”
“We’re glad to see these companies take a leadership role in advancing methane measurement and disclosure,” said Andrew Logan, senior director of oil and gas at Ceres.
“The Oil and Gas Methane Partnership 2.0 is a strong framework to advance both detection and accurate reporting, and it is important that we see other oil and gas companies follow ConocoPhillips, Devon, and Pioneer and join,” Logan said.
The OGMP 2.0 Initiative is a voluntary, public-private partnership between the United Nations Environment Programme, the European Commission, the Environmental Defense Fund and over 80 oil and gas companies aimed at minimizing methane emissions from global oil and gas operations.
ConocoPhillips buys into Texas LNG project
Also on July 14, ConocoPhillips agreed to acquire a stake in the Port Arthur LNG plant in Texas from Sempra.
The new large-scale LNG facility is under development by Sempra Infrastructure, a subsidiary of Sempra in Jefferson County, Texas.
ConocoPhillips has entered into a Heads of Agreement, or HOA, with Sempra to acquire a 30% direct equity holding in Port Arthur Liquefaction Holdings LLC and an LNG offtake equivalent to approximately 5 million tons per annum from the Port Arthur LNG project.
The first phase of the project is fully permitted and expected to include two liquefaction trains and LNG storage tanks, as well as associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG.
As one of the top five natural gas marketers in North America, ConocoPhillips said it will bring extensive commercial expertise and resources to benefit the project.
Under the terms of the HOA, ConocoPhillips will supply the gas for its 5 Mtpa offtake and may provide additional gas supply services to the Port Arthur LNG facility.
In addition, ConocoPhillips will have the option to acquire certain LNG offtake and equity ownership from future contemplated LNG trains at the Port Arthur LNG site, where a similarly sized Phase 2 project is also under development.
“ConocoPhillips has been a driving force in the LNG industry since we helped open the Atlantic LNG market beginning in the 1950s, and then the Asia-Pacific market by delivering the first LNG cargo to Tokyo Bay in 1969,” said Ryan Lance, chairman and chief executive officer. “The decision to enter into this agreement with Sempra provides us with a ground-floor opportunity to participate in premier LNG developments, reinforcing our commitment to helping solve the world’s energy supply needs as we transition to a lower-carbon future,” he said, adding “Sempra brings a long history of successful LNG project development, and we look forward to working together to provide reliable LNG to support the energy transition and strengthen U.S. and global energy security.”
- Oil Patch Insider is compiled/written by Kay Cashman
