page Wulff says Oil Search moving to 3 Pikka FEED decision at year end
Vol. 24, No. 34 • www.PetroleumNews.com A weekly oil & gas newspaper based in Anchorage, Alaska Week of August 25, 2019 • $2.50
l EXPLORATION & PRODUCTION DNR’s Feige dismisses one default by Alliance on Guitar unit One of the two Guitar unit defaults issued by the Alaska Trident fishbones Department of Natural Resources’ Division of Oil and Gas has been cured, per an Aug. 19 decision by DNR Commissioner BlueCrest triple fishbones equal reservoir contact of 21-27 individual wells Corri Feige. On March 26, Alliance Exploration LLC, operator of the By STEVE SUTHERLIN Johnson, BlueCrest CEO and president central North Slope Guitar unit, received a notice of unit ter- told Petroleum News. Petroleum News mination for failure to provide a plan of exploration update “Each fishbone well contacts the same and failure to comply with applicable statutes and regulations lueCrest Alaska has unveiled its new amount of reservoir rock as seven-nine requiring a unit operator bond to be posted with DNR (state B“trident fishbone” well design, individual horizontal wells, and each tri- statute 11 AAC 83.390). building on the company’s successful dent well should recover the same ulti- The small independent promised to secure the bond by fishbone design oil wells, which have mate reserves as three fishbone wells June 25 but did not do so. However, the bond was received by markedly improved the economics of since the reservoir contact is the same,” Johnson said, adding, “so, each trident see UNIT DEFAULTS page 12 BlueCrest’s Cosmopolitan project target- well provides the same amount of reser- ing the Hansen field offshore Cook Inlet. J. BENJAMIN JOHNSON As the name implies, the trident configu- voir contact as 21-27 individual wells.” New North Slope player; 88E ration involves the drilling of three fishbone wells The trident fishbone allows more wells to be snags Premier for Icewine JV from one single wellbore. drilled in a shorter time, bringing new oil produc- “The fishbone wells achieve significantly more tion online sooner, BlueCrest said in a recent pres- Independent 88 Energy Ltd. said Aug. 22 it has a new joint reservoir contact and penetration than convention- entation. “This saves substantial time and cost venture partner for its conventional Icewine project on al wells, but we haven’t calculated the incremental associated with drilling the long-reach wells from Alaska’s North Slope. London-based independent Premier Oil ultimate recovery; it is substantial,” J. Benjamin see FISHBONE WELLS page 11 (LON:PMO) signed a sale and purchase agreement with 88 Energy and Burgundy Xploration to farm-in for a 60% interest l in Area A, containing the Malguk-1 discovery drilled by BP in EXPLORATION & PRODUCTION 1991, which discovered but never tested 251 feet of light oil pay in turbidite sands in the Brookian Torok formation. Premier will pay the full costs of an appraisal well, Charlie- Pikka moving closer 1, up to a total of US$23 million to test the reservoir deliver- ability of the Malguk-1 discovery. The well will be drilled and tested in the first quarter of 2020. Oil Search files development plan for the Pikka portion of giant Nanushuk Project Premier, which was founded in 1934, estimates an accumu- see ICEWINE JV page 12 By KAY CASHMAN In turn, on Aug. 19, the division posted a Petroleum News 30-day notice asking for public comments Rocking the NS investment boat: il Search Ltd. has taken one more step on the proposed Nanushuk Project’s Pikka another effort to raise oil taxes Otoward production of its big Nanushuk oil development, which includes some discovery, scheduling its 120,000 barrel per day infrastructure on leases outside the unit. An initiative was filed Aug. 16 to put what backers are call- development for April 2023. ing the “Fair Share Act” on the Alaska ballot in 2020, increas- On July 15, Oil Search (Alaska) LLC submitted oil field on Alaska’s North Slope. ing what the group calls “Alaskans’ share of production rev- a plan of operations application to the Alaska In turn, on Aug. 19, the division posted a 30-day enues from the sale of our oil.” Department of Natural Resources’ Division of Oil notice asking for public comments on the proposed This is the second oil tax related initiative Alaska has seen and Gas to authorize the development phase of a Nanushuk Project’s Pikka development, which in recent years. The current initiative would enact oil tax legis- portion of its Nanushuk Project within the Pikka includes some infrastructure on leases outside the lation; the 2014 initiative would have repealed oil tax legisla- unit. The Nanushuk oil reservoir west of the cen- unit (see project overview map in pdf of this tion. tral North Slope is thought to rival that of multibil- “Alaskans should receive their fair share from the sale of lion-barrel Kuparuk River unit, the second largest see PIKKA PROGRESS page 7 our oil,” said Robin Brena, one of the current initiative com- mittee members. The group proposing the initiative said the tax l NATURAL GAS increase would only apply to the largest and most profitable see OIL TAX INITIATIVE page 15 Glimmer of hope for gas RCA orders rework of some elements Alberta electricity producers start switch from coal to gas fired power plants in CINGSA’s proposed tariff rates Following a lengthy hearing, the Regulatory Commission of By GARY PARK Despite Western Canada’s imbalance of gas Alaska has ordered Cook Inlet Natural Gas Storage Alaska to For Petroleum News production that is weighted in favor of “dry” rework its proposed revenue requirement. The revenue require- ment, the revenue that a utility needs to obtain to cover its costs wo of Canada’s largest electricity generators gas, there has been success in pursuing the and earn a return on its investments, is a key factor in determin- Tare giving a lift to Alberta’s hard hit natural associated light petroleum liquids in the ing the rates the utility charges its customers. gas sector by converting more of their coalfired Montney formation that crosses the Alberta CINGSA provides natural gas storage services for gas and facilities to consume gas. British Columbia border. electricity utilities in Southcentral Alaska, enabling the utilities And even more of Alberta’s existing energy to warehouse gas during periods of low gas demand. The only electricity market could join the trend once 13% by wind, 11% by hydro and 2% by geother- stored gas is critical to ensuring adequate gas supplies and the provincial government embarks on a promised mal, and Capital Power Corp., a multinational deliverability when gas demand is high, particularly during the plan to tackle some of the electricity sector’s fun- operation with capital assets estimated at C$450 winter. CINGSA’s rates impact the rates that the utilities need damental issues. billion. to charge their customers for the supply of gas and electricity. For now, the move to change is being led by Calgary based TransAlta, which has 70 power TransAlta Chief Executive Officer Dawn Farrell see TARIFF RATES page 14 plants in Canada, the United States and Australia said the conversion of her company’s coalfired that are currently 52% fired by coal, 22% by gas, see HOPE FOR GAS page 13 2 PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 l GOVERNMENT Balash resigns from Department of Interior
By KRISTEN NELSON Lisa Murkowski, R-Alaska, said Aug. 21. Prior to his positions in Washington, D.C., “From standing up the leasing program for the 1002 Petroleum News Balash, who is from North Pole, served as Area to the lifting of decades-old Public Lands Orders, oe Balash, assistant secretary of the U.S. Department deputy commissioner and then commissioner of Joe has worked tirelessly to advance responsible resource Jof the Interior, has resigned effective Aug. 30, Alaska the Alaska Department of Natural Resources, development and improvement land management,” Public Media reported Aug. 20. Secretary of Interior and before that was staff in the Alaska Murkowski said. She said Alaska is in a better place David Bernhardt announced the resignation by tweet Legislature. because of his leadership, thanked him for his public Aug. 20, saying that Balash had service and wished him the best in future endeavors. announced that day he would be Murkowski said she is “confident that even without him, moving on from Interior. Bernhardt Prior to being named assistant secretary, Balash served the strong partnership we have formed with the said he joined the president in as chief of staff to U.S. Sen. Dan Sullivan, R-Alaska. Department in this administration will continue.” thanking Balash for his service. “Joe Balash has been a dedicated public servant for Prior to his positions in Washington, D.C., Balash, Balash was confirmed to the over twenty years,” Sullivan said in an Aug. 21 statement. who is from North Pole, served as deputy commissioner Interior position in 2017. In “During his tenure at the Department of the Interior, he and then commissioner of the Alaska Department of announcing his confirmation, worked tirelessly to promote the goal of American energy Natural Resources, and before that was staff in the Alaska Interior said the assistant secretary dominance, and understood that Alaska was key to that Legislature. heads the department’s manage- goal. In doing so, he has helped set Alaska up for success He told Alaska Public Media that he was resigning to ment of all federal lands and waters, JOE BALASH for years to come. I wish him all the best in his future pursue another opportunity, which he would describe at a and associated mineral and nonmineral resources, as well endeavors.” later date. l as appropriate regulation of surface coal mining, includ- “I greatly appreciate Joe’s hard work and dedication at ing both the Bureau of Land Management and the Bureau the Department, where he has led the way on a number of of Ocean Energy Management. issues that are critical to our state and nation,” U.S. Sen. contents Petroleum News Alaska’s source for oil and gas news ON THE COVER EXPLORATION & PRODUCTION Trident fishbones 3 Oil Search, Conoco team up in Alaska BlueCrest tech equals reservoir contact of 21-27 individual wells Operators working together to develop huge Nanushuk oil Pikka moving closer reservoir; Oil Search still plans to divest percentage in core leases Oil Search files plan for Pikka portion of giant Nanushuk Project 4 US drilling rig count up by 1 to 935 Glimmer of hope for gas in Alberta 4 ND drillers set production record in June Electricity producers start switch from coal to gas fired power plants 5 New Mexico oil production causes boom DNR’s Feige dismisses one default by Alliance on Guitar unit FINANCE & ECONOMY New North Slope player; 88E 4 Koch joins Alberta oil sands bailout snags Premier for Icewine JV GOVERNMENT Rocking the NS investment boat: 2 Balash resigns from Department of Interior another effort to raise oil taxes RCA orders rework of some elements in CINGSA’s proposed tariff rates ENVIRONMENT & SAFETY 4 SD seeks solution to abandoned gas wells
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l EXPLORATION & PRODUCTION Oil Search, Conoco team up in Alaska Operators working together to develop huge Nanushuk oil reservoir; Oil Search still plans to divest percentage in core leases
By KAY CASHMAN Petroleum News
il Search Ltd.’s half year financial Oreport and webcast on Aug. 20 carried news about its Alaska activities and plans, OIL SEARCH COURTESY most significant that Oil Search (Alaska) LLC is working with ConocoPhillips to develop the North Slope’s big Nanushuk oil reservoir and that the ASX listed com- pany is still looking at taking on a partner, aiming to retain approximately 35% across its core leases KEIRAN WULFF versus the 51% it currently holds. Informally dubbed the Narwhal trend by ConocoPhillips, the Nanushuk reser- voir lies west of the central North Slope, its boundaries continuing to expand with exploration by both companies. The top oil producer in Alaska, ConocoPhillips operates the nearby Colville River (Alpine) unit and the Kuparuk River unit, as well as mostly undeveloped leases in the area, many of which are to the west in the National for 2022, a year earlier than initially 120,000 bopd, is expected to come The development plan submitted in Petroleum Reserve Alaska (see map of planned. onstream in 2024. This revised and mid-July to the Alaska Department of entire area in the pdf version of this The company is “finalizing develop- phased development approach will allow Natural Resources’ Division of Oil and story). ment plans associated with early produc- early learnings from development drilling Gas indicated start-up of the 120,000 bpd As previously disclosed, Oil Search tion and is focused on exploring opportu- to be incorporated into the full develop- facility would be in April 2023 and do not has revised its Pikka unit development nities to utilize infrastructure owned by a ment plan, as well as generating early mention possible early production of plan. First production of approximately nearby operator. The full-scale field cashflow,” Oil Search said in its half year 30,000 barrels of oil per day is targeted development, with a nominal capacity of ending June 30 results report. see NANUSHUK TEAM-UP page 5
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FINANCE & ECONOMY EXPLORATION & PRODUCTION Koch joins Alberta oil sands bailout US drilling rig count up by 1 to 935 The foreign based pullout from Alberta’s oil sands sector gathered even more On Aug. 16 the number of rigs drilling for oil and natural gas in the U.S. was up by momentum with word that giant Koch Industries has sold it assets to Calgary based one from the previous week to 935, Houston oilfield services company Baker Hughes Paramount Resources, notably the largest land holding in the Athabasca region. said, but down 122 from 1,057 active rigs a year ago. The deal includes turning over five oil sands leases to Cavalier Energy, a unit of In its weekly rig count, the company reported that 770 rigs targeted oil (up six from Paramount, the Alberta Energy Regulator reported. the previous week; down 99 from a year ago) and 165 targeted natural gas (down four Because Koch is privately held, the value of the transaction was not reported, from the previous week; down 21 from a year ago). There were no miscellaneous rigs although Paramount Chief Executive Officer Jim Riddell hinted the price was not large. active (down one from the previous week; down two from a year ago). But the deal reinforces the oil sands exodus by foreign controlled companies, led by The company said 68 of the U.S. holes were directional, 815 were horizontal and ConocoPhillips, Royal Dutch Shell, Devon Energy and Norway’s Equinor, driven by 52 were vertical. their desire to avoid endless conflicts with environmentalists and indigenous commu- Pennsylvania was up by four rigs from the previous week; Louisiana was up by nities. three The AER approved the assets transfers on Aug. 1, almost two months after an appli- Alaska and New Mexico were each up by two rigs. cation was filed. North Dakota and Wyoming were each up by one rig. For Koch, the deal brings to an end its disappointing foray into the oil sands, includ- The rig count in California, Colorado and Utah was unchanged from the previous ing its decision in 2016 to scrap plans for the C$800 million steam powered Muskwa week. project because of “regulatory uncertainty” and policies by the former Alberta govern- Oklahoma was down by a single rig; Ohio was down by three rigs. ment of Premier Rachel Notley to reduce carbon output from the oil sands. Texas, which at 450 has the most active rigs in the country, was down four rigs from Koch also brought to a halt in 2003 its C$3.5 billion Fort Hills mining project the previous week, as was West Virginia. because of Canada’s ratification of the Kyoto Accord. Baker Hughes shows Alaska with 10 rigs active for the week ending Aug. 16, up It later sold its interest, which a consortium led by Suncor Energy has turned into a from six a year ago. C$17 billion project. The U.S. rig count peaked at 4,530 in 1981. It bottomed out in May 2016 at 404. Koch was unable to attract any offers for six properties covering 220,000 net acres —KRISTEN NELSON and holding an estimated 8 billion barrels of bitumen resources it put on the block in 2012. It later removed the assets from the market. ND drillers set production record in June Paramount has created in 1976 and since acquiring Canadian assets of Apache that have lifted its output to nearly 100,000 barrels of oil equivalent per day. North Dakota regulators say drillers set a record for oil production in June. It holds diverse assets in Western Canada and the Northwest Territories and is tar- The Department of Mineral Resources says the state produced an average of geting a top tier position in the heart of northern Alberta’s Duvernay and Montney 1.42 million barrels of oil daily in June. That was up from 1.39 million barrels a plays. day in May and the previous record of 1.4 million barrels daily set in January. North Dakota also produced a record 2.87 billion cubic feet of natural gas per —GARY PARK day in June, up from 2.81 billion cubic feet in May. Statewide, companies flared 24% of all gas produced, or double the 12% tar- get. There were a record 15,741 wells producing in June. The June tallies are the latest figures available. There were 61 drill rigs operating Aug. 15, down two from the June average. —ASSOCIATED PRESS ENVIRONMENT & SAFETY Setting the Standard for INTEGRATED FACILITY MANAGEMENT SD seeks solution to abandoned gas wells SECURITY SERVICES South Dakota leaders are considering legislation to prevent the state from bear- and DENALIUNIVERSAL.COM ing the financial responsibility of closing abandoned gas wells. The state is on the hook for nearly $1 million to plug 40 abandoned wells in northwestern South Dakota. Department of Environment and Natural Resources Minerals and Mining program administrator Mike Lees says the state has never www.PetroleumNews.com faced this problem before and has no established policy as a result. The Argus Leader reports the Minerals and Environment Board and the gover- Kay Cashman PUBLISHER & FOUNDER ADDRESS nor’s office have started to consider legislation for the 2020 session. P.O. Box 231647 The Rapid City Journal reports the Board of Minerals and Environment is con- Mary Mack CEO & GENERAL MANAGER Anchorage, AK 99523-1647 sidering an increase in bonding for oil and gas drilling as the state pursues a $15.5 million lawsuit against a Texas based company for abandoning gas wells in west- Kristen Nelson EDITOR-IN-CHIEF NEWS ern South Dakota. 907.522.9469 The state is suing Spyglass Cedar Creek, of Houston, Texas, for abandoning [email protected] Susan Crane ADVERTISING DIRECTOR the wells after a drilling project fell through several years ago. Spyglass Cedar Creek drilled 40 natural gas wells near Buffalo then abandoned CIRCULATION Heather Yates BOOKKEEPER them after natural gas prices plummeted. 907.522.9469 Board members called the Spyglass saga a “perfect storm.” [email protected] Marti Reeve SPECIAL PUBLICATIONS DIRECTOR Lees says the state has not had similar issues with other oil and gas developers in the state. ADVERTISING Steven Merritt PRODUCTION DIRECTOR —ASSOCIATED PRESS Susan Crane • 907.770.5592 [email protected] Alan Bailey CONTRIBUTING WRITER Petroleum News and its supple- ment, Petroleum Directory, are Eric Lidji CONTRIBUTING WRITER owned by Petroleum Newspapers of Alaska LLC. The newspaper is pub- lished weekly. Several of the individ- Gary Park CONTRIBUTING WRITER (CANADA) uals listed above work for inde- pendent companies that contract Steve Sutherlin CONTRIBUTING WRITER services to Petroleum Newspapers of Alaska LLC or are freelance writers. Judy Patrick Photography CONTRACT PHOTOGRAPHER
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OWNER: Petroleum Newspapers of Alaska LLC (PNA) Petroleum News (ISSN 1544-3612) • Vol. 24, No. 34 • Week of August 25, 2019 Published weekly. Address: 5441 Old Seward, #3, Anchorage, AK 99518 (Please mail ALL correspondence to: P.O. Box 231647 Anchorage, AK 99523-1647) Subscription prices in U.S. — $118.00 1 year, $216.00 2 years Canada — $206.00 1 year, $375.00 2 years Overseas (sent air mail) — $240.00 1 year, $436.00 2 years “Periodicals postage paid at Anchorage, AK 99502-9986.” POSTMASTER: Send address changes to Petroleum News, P.O. Box 231647 Anchorage, AK 99523-1647. PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 5
l EXPLORATION & PRODUCTION New Mexico oil production causes boom
ASSOCIATED PRESS New Mexico was already expecting a $1.3 billion in July — or roughly 11% over previous — during this budget surplus for the fiscal year. The latest Legislative year’s 60-day legislative session. Roughly two thirds of ew Mexico is now on track to collect an unprece- Finance Committee revenue tracking report suggests that that amount is going toward salary increases for teachers dented $7.8 billion in the budget year thanks to N the final surplus figure will likely end up being larger. and other types of education spending. skyrocketing oil production, according to a new legisla- “There are a few storm clouds on the horizon, but we In addition, the $7 billion budget signed into law by tive revenue tracking report. know our revenues are running strong,” said Sen. John Gov. Michelle Lujan Grisham authorizes $389 million in The report says total state revenue collections were roughly $273 million above projected levels through Arthur Smith, D-Deming, chairman of the Legislative spending for highway repairs and construction around April largely because of oil production in southeastern Finance Committee. New Mexico. New Mexico, the Albuquerque Journal reports. Most of the revenue windfall is due to an oil boom in While Smith cited concern about a possible looming The higher than expected revenue surge for the budg- the Permian Basin that has been driven by improvement glut of oil production and uncertainties in the interna- et year that ended June 30 could allow for additional in drilling techniques and production methods and has tional market, he said the state’s budget situation could spending increases on public schools, roads, pension made New Mexico the nation’s third highest oil produc- allow for another big spending increase for the coming funds and other programs. ing state. year while still keeping cash reserves of 20% or higher. Legislative and executive economists will release Already, the state’s cash-flush revenue situation has The record high revenue levels come just two years new official revenue estimates at a legislative hearing in allowed lawmakers to authorize an unprecedented $663 after a steep revenue downturn forced lawmakers to cut Red River later in August. million spending increase for the budget year that started spending and take money from various state funds. l
continued from page 3 upgrade within the Pikka unit, optimized rigs capable of drilling 70% of >120 According to comments made in drilling information and early results from wells” per a chart in the results. NANUSHUK TEAM-UP the Aug. 20 webcast by Oil the 2019/20 winter drilling season,” the • As part of Oil Search’s new organiza- company said. tional structure, Wulff’s title was changed 30,000 bpd (see related story on Pikka on Search’s top executive in Alaska, Regarding the resource upgrade, the from executive general manager and page 1 of this issue of Petroleum News). Keiran Wulff, the company is “moving to FEED at end of this following was said: “The results of the Alaska president to “EVP and Alaska drilling program are presently being com- president,” and, Bruce Dingeman, former- FEED timing year,” FEED meaning front-end bined with well data from other wells ly business unit executive vice present, is According to comments made in the engineering and design. drilled in the trend as well as reprocessed now chief operating officer, and continues Aug. 20 webcast by Oil Search’s top exec- and merged 3D seismic data. As previous- to report to Wulff. utive in Alaska, Keiran Wulff, the compa- from third parties, including an attractive ly indicated, we anticipate a material • Capital costs in Alaska in the first half ny is “moving to FEED at end of this conditional offer, to acquire an interest resource upgrade above the acquisition the year were US$290-$340 million for year,” FEED meaning front-end engineer- from the joint venture in the Pikka unit case, which will be reviewed by independ- exploration and evaluation and $450 mil- ing and design. development project and adjacent leases,” ent experts ahead of a formal certification lion for exercising the “Armstrong option” He noted that Pikka has already Oil Search said. process in early 2020 and before the for a final buyout. received its most critical approval, which The process was “suspended in early planned equity sell-down.” • The “Repsol farm-down” to a 49% was the U.S. Army Corps of Engineers’ 2019 due to a change in partner views working interest in Pikka, Horseshoe and Record of Decision and permit that was regarding the upside resource potential, Looking to ‘secure’ two rigs nearby leases netted Oil Search $64 mil- issued in May and contained Oil Search following the positive results of the Other interesting Alaska news that lion. l changes reflecting feedback from permit- 2018/19 appraisal drilling and the increase came to light Aug. 20 included: ting agencies and key stakeholders, in par- in resource potential recognized in the • “Negotiations advanced to secure two ticular the residents of the nearby Native Horseshoe area, both within the existing village of Nuiqsut. field extension and in newly identified Wulff said the company doesn’t need Nanushuk prospects within the Horseshoe to drill more appraisal wells in the core block,” Oil Search said, validating rumors Pikka development area, having done a and related statements from Repsol exec- “very, very comprehensive independent utives that the Madrid based major was review,” incorporating 3D seismic and interested in increasing, not decreasing its drilling results from several wells in the North Slope investments. field. Oil Search said in June it would be Instead, Oil Search will be drilling two “recommencing a formal divestment “very big potential exploration prospects” process” to bring in a third partner for nearby during the coming winter drilling some of its interests in its Alaska portfolio, season, likely referring to Horseshoe and scheduled to conclude in the first half of Grizzly, which the company has men- 2020, ahead of a final investment decision tioned before in conjunction with next for the initial Pikka development. winter’s two-rig program. This was confirmed in its Aug. 20 In the written results, the company said results and webcast, although the words the two “high quality prospects” offered “third partner” were not used. “early commercialization options.” “Preparations to divest a portion of our Alaskan portfolio are advancing well, Taking on a partner with Oil Search aiming to retain approxi- Oil Search and Repsol originally mately 35% across our core leases. A for- intended to take on a third major partner mal sell-down process is planned to com- for Pikka and Horseshoe acreage “back- mence late in the fourth quarter, with com- to-back with the exercise of the Armstrong pletion expected to occur prior to a final option,” the company said in a June 27 investment decision on the Pikka unit statement. development, currently scheduled for “Despite not running a formal process, mid-2020. We believe this timeframe will in late 2018/early 2019 Oil Search enhance the value of our sell-down, by received strong expressions of interest incorporating the expected resource
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For more informa- rates in the Pacific led to the expansio her husband an —PAULA staffin Northwest n of this d • Your employees are spotlighted maintenance, repair and EASLEY g and the role and continues business model tion visit www.motionindustries.com. individuals to challenge and its play within the traditional thin operation replacement parts, employment arena. king about is pleased to announce the Y-Tech Services Inc. awarded DLM contract Comp —PAULA EASLEY release of another MiHow2 anies involv video. The goal of the video Y- Te ch Services Inc., a subsidiary of Yu lista Holding LLC, has been awarded the MH-60T and nort ed in Alaska • Your news gets in Oil Patch Bits series is to provide instruc- rotary wing aircraft depot level maintenance support services contract for the United hern Canada ADVERTISER tion to viewers to help them INDUSTRIES MOTION COURTESY ’s States Coast Guard. 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LTD d Technology ...... bearings in a pillow block housing. “How to Maintain Bearing and Pillow Block Centers Alaska Anal NMS . .18 mately 14 aircraft annually ensuring continued mission performance. ytical Labor Doyon Univer Employee Alaska atory ...... sal Services Leasing When Replacing Bearings” was filmed with the help of Schaeffler, a ke y Motion Industries Anvil ...... EEIS ...... Nordic Cali Y- Te ch is fulfilling the U. S. Coast Guard’s continuing requirement for aircraft mainte- ...... 15 Consulting Engi ...... sta Alaska Comput ...... neers ...... 3 Nor OIL PATCH BITS er Brok ...... Egli Air Haul th Slope Tel supplier. The video can now be viewed on the new MiHow2.com under the MiHow2 head- nance at the USCG ALC in Elizabeth City, North Carolina. ers ...... 3 ecom . . . Alaska Cover ...... Engi Nort ...... all ...... 21 neered Fir h Star Equipment ...... ing. Alaska ...... e and Safety Services ...... 7 Dreams ...... ENSR Al North Star (NSES) ...... 8 aska . . . . . Terminal & Stevedor “Equipment efficiency starts with proper installation of parts,” said Randy Breaux, Editor’s note: All of these news items — some in expanded form — will appear in Alaska Front ...... Nort e (NSTS) ier Construct Epoch Well Servi ...... hern Air Car Alaska ors ces ...... 21 go ...... Motion Industries’ senior vice president, southern U. S. operations, corporate marketing and the next Arctic Oil & Gas Directory, a full color magazine that serves as a marketing Interstate Equipment Northern ...... Construction Source Transportati ...... tool for Petroleum News’ contracted advertisers. The next edition will be released in Alaska Mari (AIC) Inc. Nor on Co. . . .7 strategic planning. “Proper bearing installation also cuts down on frustration levels as ne Lines . . ESS Support thland Wood Alaska ...... Services Wor Products March. Railroad ...... Evergreen ldwide Northwest well.” Corp...... 24 Helicopter Technical Ser Alaska Regi s of Alaska Off vices onal Counci Fairweather shore Divers . Alas l of Carpenter Companies, The ...... ka Rubber & s (ARCC) Flowl ...... Oilfield ...... Supply ine Alaska ...... Improvements ...... Alaska Steel . . . . .11 Opt . . .4 Co. Foundex i Staffing Group Alaska Tel P ecom Friends of P .A. Lawrence Al ets ...... aska Tent & Front ...... Panalpi Tar p ier Flying Ser ...... na ...... Companies involved in Alaska Alaska vice ...... 7 ...... Text PDC . . . . iles Harris Group ...... Alaska ...... 16 West Expr Peak Civi ...... ess ...... l Technologies ...... Alliance, The ...... G Peak . .8 ...... -M Oilfield Ser Ameri .24 vice Co. . . can Mari GBR Penco ...... and northern Canada’s oil and gas industry ne ...... Equipment ...... American Ti ...... Petr ...... 14 re Corp...... 16 GCI oleum Equipment ...... Amer & Services ...... 16 i-Tech Building Great Nort Petrotechni Systems hern Engineeri cal Resources ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARSArctic Control GPS ng PGS of Alaska . . . s ...... Environmental Onshore ...... Arcti ...... 2 c Foundations ...... Hawk Consul Prudhoe Bay . . . . .16 tants . Shop & Stor Delta Leasing ...... 27 Arctic Slope ...... PTI age Telephone H.C. Price ...... Group A N-P Arcti Assoc. Co-op...... 4 c Structures Heating DET-TRONICS & Ventilation ABR Nabors Alaska Drilling Arctic Wire Rope Hol Sales & Supply aday-Parks Dowland-Bach Corp. ASRC Energy Indus AECOM Environment ...... 4 Nalco Services trial Project ASRC Services Q Doyon Anvil ...... 21 Energy Ser Inspirations -Z vices Alaska ...... aeSolutions ...... 6 NANA WorleyParsons ASRC Ener Jack ...... QUADCO gy Services ovich Industr ...... Doyon Drilling Aurora Houston Cont ial & Constructi ...... 8 Nature Conservancy, The Geosciences racting (HCC) Judy Patri on Supply Rain for Rent Air Liquide ...... 19 ck Photography ...... Avalon Devel Kenai .14 Salt + Light Doyon, Limited opment Aviation Creati NEI Fluid Technology ve ...... Alaska Clean Seas (ACS) Kenwor Schlumberger ...... Doyon Universal Services th Alaska ...... 19 Nordic Calista King Street Seekins Ford Al k D B Storage ...... -F Kuukpi Shaw ...... k Arctic Servi Alaska ...... Badger ces ...... 17 Productions Kuukpik Spenard Bui ...... - LCMF lders Supply ...... Baker Hughes LaBodega STEELFAB 6 Bombay Deluxe Li 3M Al Restaurant ster Industries aska BP Explorati Lounsbur Tai ga on (Alaska) y & Associ Ventures Brooks Range ates Tire Supply . . Lynden Air Car Distribution Cali ...... go ...... Systems (TDS) sta Corp...... Lynden ...... Total Safety ...... 23 Air Freight ...... U.S. Inc. Canadian ...... 24 T Mat Systems Lynden Inc...... OTE Capi (Alaska) ...... 24 tal Office Syst Lynden Int ...... Totem Equi ems ernational ...... pment & Carlile T ...... 24 Supply ransportation Lynden Logi ...... TTT Environmental CGG V Services stics ...... eritas . Lynden ...... 24 Tubular ...... Transpor ...... Solutions Al CH2M ...... t ...... 24 aska HILL ...... Mapmaker ...... Tutka . . . . .5 s of Alaska ...... Colville MAPP . .24 Udel A Testlab hoven Oilfield COMPANY LIST CONAM Systems Servi Cons Unique ces truction Marathon Oil Machine ConocoPhillips Mark Univar Alaska . . . . . eting Solutions USA Construc ...... URS tion Machinery ...... M-I Swaco Corp. Exposure in the semiannual Arctic Oil & Gas Directory Cosco Industrial . .10 Fire Protecti MRO Sal Usibelli on es ...... Crowley Al ...... U. aska ...... S. Bearings and Cruz ...... 8 Drives Construction Victaulic N Wester -P nGeco ...... Nabors Weston Sol ...... Alaska Dril utions ...... ling ...... XT . .15 NANA/Colt ...... O Energy Engineering ...... 13
All of the comp anies listed above advertise 1 with Petrole on a regular ol. 19, No. um News basis RECTORY • V OIL & GAS DI
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Oil & Gas DirectoryASR UR O Gasser C perations s Steve ic oil and gas o omote the promo- overing Arct prn announce C s, constructio pleased to s Fab- ol. 19, No. 1 and the logistic s Inc. is y’ Y • V rtr tgheym Service for the compan 14 OIL & GAS DIRECTOR mASs thRCat su Eppneo al manager ARCTIC rctic and service fir as the gener rctic er A Steve Gass Gasser A of tion ision. truction div 16 on and Cons ay opera- OIL & ricati r the day-to-d ARCTIC GAS DIRECTORY • esponsible fo up, and Vol. 19, No. 1 will be r struction gro rth Slope con li- tions of No brication faci and Kenai fa the Anchorage arine’s In the elaer ley M Active companies ties. the Renss rs Har field of ve COM a graduate ab deli UAF with L EGLIAIR BRISTOLBAY is a Mas- F prog % MAI Gasser earned Vigor ram brings GeoFORCE !,!3+! AIRCOM where he textbook OR ITE WWWEGLI de c Institute arge geology 0HONE 7EBS we perform a wi Polytechni Science Man- st AK b to life, encour Alaska ing e est Serving Alaska since 1982, Engineer new ces’ new aging high Advertising &AX AIRCOM ncluding helicop- • Your news gets featured e in oject Servi from the school KY ALASKA ter of Scienc tified pr y Marine North Slope students % MAIL JOESAMUDOVS variety of flight operations, i , and spe- n, he is a cer ivered Harle iuliuk Bay to pur CARGOCOM , aerial survey In additio s of has del 8-inch Il sue STEM BSITE WWWALASKA aces, ter and airplane charter work, agement. with 15 year Vigor Fab by 15-foot degrees 7E ore pl sional ASSER by 70-foot big island, Hiking cal Pages Award winning cargo services to m cialized operations such as externalming load and profes ior to his STEVE G 250-foot meaning on the Matanus The Lo E , and aintenance, aerial fil management ience. Pr vessel, the Aleut name Arto ka Glacier, 2012. 2013 IA %ARHART $R 3T ore often, with more lift to, from powerline m exper iuk Bay, an vice provided ctic Slope Regional Corporat GeoFORCE Ala !MEL m . ect management projects, en- and barge. Iliul ity of ser ion (AS ska sponsors: AKE #ITY 54 within the state of Alaska. videography proj nager of cation, deck qual Construction, Great Bear Petr RC), ASRC Energ 3ALT , LACKBURN -ARKET er was ma ement, fabri t to enhance oleu y Services, GRANITE #ONTACT +INDSEY " role, Gass ng, procur buil aska. berger, Shell, m, ExxonMobil, Ol #ONTACT M ice Inc. ir Ventures new ineeri 08. was purpose king in Al . Statoil, and goonik, Schlu A ountain Air Serv Last Frontier A S R ger, and eng since 20 and wor h Harbor more olstenXP. Please m- ING !SSISTANT Bald M na infor conta G (WY neering ma en with AES s living v. 3 in Dutc mation on how you ct GeoFORCE Ala EX . 'LENN • Company photos promote gi . He has be customer service No that can can help fund the ska for 0HONE 0/ "OX manager y entered workhorse student exper 3UTTON !+ truction uliuk Ba lexible ience. X PRO (OMER !+ RATIONS ER cons Ili ovides a f serve &A AGESNET ER $IRECTOR OF /PE $AVE +ING OWN design pr cargo to IL THALL THELOCALP #ONTACT 'ARY 0ORT #ONTACT unique other %MA RCE /UTSIDE 3ALES Her s and ACT +IM "OGDEN E 0HONE een container s. !LASKA #ONT FO R 0HON witch betw customer A 2EGIONAL -ANAGE &AX y s s !LAEO SK the easil ey Marine’ Dutch -ANAGER &AX AINAIRCOM ER ,&!6COM illie to lead of Harl o between OORDINATOR BALDMOUNT % MAIL HELICOPT F G C nita McG diverse needs ety of carg 0HONE Phone %MAIL RCOM ired A the vari A The Best AINAI "ASE McGillie joins GlobalInc. h Divingas h & Salvagea Inc.sed in t a wide aking ITE WWWBALDMOUNT off air- !NCHORAGE & Salvage manager. B l transpor TLP is dedicated to m arily on smaller 7EBS ,&!6COM bal Diving resources She wil nds. own. We focus prim ountain Air Service specializes in 7EBSITE WWW ineral ex- Glo as human ing isla ultants and Book in T Bald M ng mining, oil & gas ide for m your business p ghbor ces Grou and nei itime Cons TESY U - Helicopter support statew ent, an Resour Seattle, Harbor Jensen Mar es communities,R providing personalized, in-depth port operations supporti. Twin and single tur , research and developm Hum ers in gned by , Ore., hous U ploration, survey sup- rate headquart barge, desi in Portland information specific to each coverage area. exploration and tourism projects, telecom lobal’s corpo g’s Human The and Shipyard to se- CO ered DeHavilland Otters. slung cargo, video/film G Global Divin s Swan Isl ane, D rings S bine pow direct at Vigor’ awler cr O ort port, tours, crew transport, heli skiing. Short e will of HR built es cr T pp Wash., sh evelopment Vicon Seri and eight r Passenger/Charter & Su contracts. up in the d towoc 4100 three high Ai Egli Air Haul and long term Gro any- to PHO supplement ources g comp a Mani ners up as A biannual Res ce, ongoin contai cargo such 0/ "OX complian EO 40-foot ocean for other c. licies and ead the E cure e and aft ska Air Cargo +ING 3ALMON !+ Lynden In po rts, spearh running for equipment. Ala RINE ,INES ment effo ster ng bars general ir Cargo ONTACT 3AM %GLI !LASKA -A • You’re included in the ide recruit as admini lashi hinery or Horizon A # T %XPRESS w s as well ruction mac 3%!&: !LASKA 7ES Vol. 20, No.2 program const 0/ "OX 0HONE d diversity ms. heavy October 2015 an fit progra TLE 7! &AX oyee bene the Uni- 3EAT $IRECTOR OF 3ALES al’s empl om the ations at *OE 3AMUDOVSKY Glob bal Diving fr ic communic #ONTACT joins Glo ess and sm and publ helor of Arts McGillie nting busin died journali ceived a Bac mmercial pri per. He stu where he re writing media and co or for a com- a Anchorage, nt journalism, he HR direct sity of Alask round in pri de eviously t s, and op- ver s a backg and outsi ...... 39 was pr employee and ha e Press ...... buyer’s guide o 1,100 MCGILLIE in 2001, Anchorag ne Maintenance t had up t ANITA degree les for the ...... 30 Pipeli ...... 39 pany tha U.S. ures artic Categories in...... this...... directory ...... the at . . . . ng tes across ous fe l 16 Fire Protection ...... 30 Plumbi ...... 39 in five sta to the numer the Schoo ...... ation ...... erated add Anita all phases jects. ectors for ng ...... Freight/Shipping & Cargo . . . .30 Power Gener ...... 40 xcited to ience in elance pro rd of dir Advertisi ...... 16 ...... are very e rs of exper fre on the boa er & Support . . . . ing Services ...... Process Equipment ...... 40 “We r 13 yea gement, ly serves Air Passenger/Chart ...... 17 Fuel ...... 31 ...... brings ove yee Enga He current y Inc...... lfield Supplies ...... Procurement Services . . .40 amily. She its, Emplo - Identit Arctic Engineering ...... 17 General Oi ...... 31 ...... Global f ng Benef icy Devel nership and ...... ogical Services . . . Management ...... es, includi , and Pol iness Part ic Gear ...... Geophysical & Geol ...... 31 Project ...... 40 Resourc nagement Bus Arct ...... 17 ...... of Human nce Ma Sales/ Bulk Diesel Heat Treating — Metal . . .32 Recycling Waste Management ...... 41 ng, Performa Aviation Fuel ...... 18 ces ...... Trai ni Yeung...... Contract/Charter Servi Reporting Software ...... 41 Management Trinity Ng- Bearings ...... 18 Helicopter ...... 32 ...... President ...... ic & Industrial . . . . . gging Supplies ...... 41 said Vice ion idges ...... 18 Hoses, Hydraul ...... 32 Ri ...... LISTINGS SECTION ,” ruct Br ...... ies opment ign, const ...... Safety Equipment & Suppl . . .41 ulting, des Buildings – Modular . . . .18 Hotels ...... 32 ...... CH2M HILL announcesce cClemenzons promotiong en- ...... ty ...... al full-servi ly growin , Catering & Lodging Industrial Gases ...... 32 Securi ...... 41 ILL, a glob f its rapid Camps ...... 19 y ...... cal ...... CH2M H as part o nz to Lecture at the cations . . . . . Industrial Parts & Suppl . . .33 Seismic & Geophysi ...... 42 nnounced Cleme Grand Canyon Cellular Communi ...... 19 ...... Space ...... mercial s firm, a on of Bryan lar . The geolo ...... on Services ...... Shops & Storage ...... 42 GCI welcomes Harrierm as com d operation promoti e . Students use gy of Alaska and the Lower Chemicals ...... 19 Inspecti ...... 33 ...... to its tea an tfolio the t Alaska, th many science disci 48 is ...... on Systems ...... l Stabilization ...... 42 J.J. Harrier l market- cals por lopmen ting excited about plines to unravel spectacu- Chemical Analytical Lab . . .19 Instrumentati ...... 34 Soi ...... elcomed mmercia y and chemi oject Deve science and geological puzzle ...... ication ...... ecently w ee the co erg m and Pr thems mathematics s, while get- Waste . . . Laboratory Services ...... 34 Steel Fabr ...... 42 GCI r help overs t of Progra Group. elves in a STEM f , and envisionin Civil & Hazardous ...... 19 ...... r. He will presiden Business y ield. g a place for ic & Export ...... Services ...... 34 Steel Sales ...... 43 manage ions vice Chemicals industr Coal-Domest ...... 20 Legal ...... marketing ublic relat rgy and petroleum ...... Surveying & Mapping . . . .43 cluding p pany’s Ene ars in the Commercial Diving ...... 20 Logistics ...... 35 ...... tment, in com- com er 27 ye acity in ...... Portable & Stationary Fabrication ...... ing depar large tele served ov adership cap cations ...... 20 Machining — ...... 35 Tank ...... 43 ns for the lemenz has eering le Communi ials ...... Equipment & Sales . . nicatio C n an engin tration for ion Equipment & Mater Maintenance ...... 35 Tel ephone ...... 43 and commu HILL i ing regis Construct ...... 21 ...... onnel Services ...... ny. oined CH2M l engineer - ect Management . . Consulting . Temporary Pers ...... 43 ns compa pres- and j ofessiona us leader Construction Proj ...... 21 Management ...... 35 ...... unicatio r was vice ains his pr in vario ...... Tire Sales & Service . . . .44 m , Harrie He maint has served ing Consulting ...... 22 Maps ...... 35 ...... joining GCI he 2007. olina and engineer ...... & Construction ...... ater NDT & Photography Prior to ctor for t South Car including ractor – General . . . . Marine Services ...... 36 Underw ...... 44 ations dire laska and l career Cont ...... 23 ...... Welding ...... mmunic e he both A ofessiona elopment – Pipeline ...... Systems ...... 36 Underwater ...... 44 ent and co ce, wher his pr oject dev Contractor ...... 23 Mat ion ...... /Repair ...... id Commer es throughout s and pr - ...... cal & Electrical Inspect Vehicle Sales/Rental . . . . .44 mber of ship rol and busines ional Soci Control Systems ...... 23 Mechani ...... 36 Service ...... rage Cha manager, Internat ...... ces ...... Contract & Charter 44 Ancho 008. r, program dent of the Analysis . . . . .23 Medical Servi ...... 36 Vessel ...... ed since 2 the manage as presi the Gov- Draw Corrosion ...... ons ...... Wastewater Treatment s employ ible for y he serves of ing the fea- etion Products Meetings & Conventi ...... 36 Water & ...... 44 wa as respons . Currentl active member Drilling & Compl ...... 24 ...... ty, he w manager tion, is an ka tures of Chec l Services ...... Distributors . . . . .36 Welding ...... 45 In this capaci branding, Alaska Sec the Alas ker- Drilling & Wel ...... 24 Metal ...... uring ...... and event omation ttee for board Me ...... Weld Repairs/Manufact . . . . .45 program r- ety of Aut ations commi Univer- sa at Electrical ...... 24 Mining ...... 37 ...... nization’s ons and o try Rel ir on the Zion Nat ...... ons ...... Rope ...... orga publicati fairs Indus s vice cha ional Park, oyee Services . . . . . 25 Moving & Relocati ...... 37 Wire nications, ernment Af serves a Advisory Empl ...... a commu ay” fo- RRIER liance, and Mining Utah. Employee ces ...... Mud & Mud Logging . . . .37 medi ke it Mond J.J. HA upport Al ring and s Energy Servi ...... 25 ...... eekly “Ma ndustry S e of Enginee from vices ...... d Services ...... ing the w di- I Colleg sponsoring Engineering Ser ...... 26 Oilfiel ...... 39 AS COMPANIES ganiz features e a Fairbanks ng ...... cal Services ...... OIL & G . .45 rrier was ty of Alask companies acco Environmental Engineeri . . .26 On-Site Medi ...... 39 ...... er, Ha a- si m- eanup ...... rums. Chamb y newsp pany the Response & Cl Permitting ...... 39 Operators the Anchorage ice-weekl students Environmental ...... 28 ...... joining Valley’s thr on the tr Supplies ...... aphy ...... 39 Before Mat-Su ip, help- Environmental ...... 28 Photogr ogy ...... ersman, the Hauling ...... tings & Thread Technol the Fronti ing the student Equipment & Heavy ...... 28 Pipe, Fit tor for s ...... grasp geological Equipment Sales/Rental concepts, and serv- ing as mentors for the interested young scientists. NEWS ITEMS
PHOTO FEATURES
Hats off to ConocoPhillips! *VUNYH[\SH[PV UZVWLYH[VY*VUV HUKWH JV7OPSSPWZ(SHZRH Y[ULYZ)7HUK*OL oil ]YVUVU[OLZ[HY[ production from your \WVM Shark Tooth discovery at Kuparuk Drill Site 2S. Brought in under HUKHOLHKVM budget ZJOLK\SLP[PZ[OL at Kuparuk ÄYZ[UL^KYPSSZP[L in more than 12 years [VHKK and is expected IHYYLSZVMV pr PSWLYKH`H[WLHR oduction. The $475 million project created Mr. Quarles, QVIZK\YPUNJV about UZ[Y\J[PVU^P[O contractor companies U\TLYV\Z to Alaska! and trades involved. welcome n Joe Maru so shack, pres t Thom ident ConocoPhillips orea to Poin Alaska alift from K ABR Exposure in co-op ads for your customers essful se n a succ AECO ctionD ET-TRON lations o M Environmwen tAlaska produ ICS Congratu 998, is the ne D NEI Flu ployee since 1AES Electric S t in theo wland-Bach Cor id Technology n ExxonMobil em enupp alyn assignmen p. , Texas, and a n, waheoSo hluatios tak Doyon Anvil Nordic Calista native of Houston d Karen Hagedor ns O:SVWLÄLSK ry Quarles, a ving succeede A KH[[OL5VY[ Doyon North Slop Co roduction Co., ha [;OVTZirVU LiquHidYYeP]L rtup Drilling e Telecom ExxonMobil P TVK\SLZMVY7VPU production sta Nort manager for OLWYVJLZZPUN Alasxkoan CMleoanbil says +V`VU3PTP[LK h Star Equipment VIPS»ZZLHSPM[VM[ ield operator Ex Seas (ACS) Services (NSES) NKVT,__VU4 s from Korea. F Alask Doyon Un Northern Air Ca
. 20, No. 1 ECTORY • Vol OIL & GAS DIR ARCTIC COMPANY PROFILES Fugro — ‘Down to Earth’
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is to O If your annual contract exceeds $7,100 C Fugro explain who Q. Can you aders? pa- our re group of com o is a global y, A. Fugr hnical, surve ing in geotec ies specializ ervices. We n onsultancy s ea, and geoc expert- subs equipment, the people, si- provide upport respon hnology to s ise, and tec t, helping developmen le resource uncer- b sk and avoid ts manage ri eid- clien uartered in L e are headq e We’ll profile your company We’ll work with you on a two-page Q&A company profile that will tainty. W nds, and hav Netherla schendam, the s in Hous- headquarter rth American ska, office No chorage, Ala exas. Our An hich ton, T b through w a regional hu to serves as l capabilities ugro’s globa we deliver F appear in the Arctic Oil & Gas Directory. Afterwards, you can frame it or use it as a company de. clients statewi y located? your compan Q. Where is ted in mid- office is loca A. Our Alaska rage. town Ancho to Slope. brochure or flyer. nt people on the North t wa gram do you mos s pro Q. What ol for a shallow hazard ber of oil company? m sets contr ng on a num about your laska Fugro survey tea are worki ook know working in A A. We a—both in C o has been - ommission- ects in Alask A. Fugr rforming on eventual dec nd gas proj he 2014 40 years, pe uction and a tic. During t r more than r oil and prod and the Arc ed in fo e projects fo ey- Inlet ere mobiliz and offshor nd pub- ing. mber of surv son, crews w e shore le energy, a support a nu field sea the state. W ng, sustainab ide We also n Alaska for ations across gas, mini take great pr g programs i multiple loc hore shallow tomers. We and mappin encies. ore and offs ic sector cus tted to con- ing ernment ag formed onsh h rig l are commi and state gov rting per assisted wit is history and federal raphic cha ssessments, as- in th state. clude hydrog hazard a ne crossing ccess in the Examples in d Atmos- ormed pipeli tinued su l Oceanic an moves, perf an systems, the Nationa nd air- lled metoce pany for on (NOAA) a ments, insta a for the was the com Administrati sess ocessed dat We’ll give you free online advertising When Petroleum News readers click on articles each week . What year pheric lite based uired and pr busy Q satel d acq her whom? borne and ort of an ing to be anot ded and by vices in supp 2015 is look turn foun nded mapping ser SDMI. global down ugro was fou wide Digital s despite the ers A. F Alaska State year for u As stakehold Dutch engi- the (SDMI). gas market. in 1962 by ing Initiative n the oil and ul for this stra, Mapp ment i we are gratef eer Kees Jou urce develop laska’s future, e and for n on The reso u- in A t in our stat e focus was along with n ed investmen us they will see your ad, which will appear in rotation on the current story pages. The size of your whos y ommunity, continu e instilled in olog c s from hav dation techn ders, benefit st that clients foun her stakehol v- the tru ograms. mechanics. merous ot h aid safe na on these pr and soil atasets, whic as partners e public d y planning y’s primary thes t preliminar oes your our compan and suppor investi- employees d Q. What is y igation g and route How many s such as sitin Q. ess activity? he en- activitie y have? p- busin volved in t compan ro employs a annual contract determines the size of your online ad. o is heavily in gations. ny-wide Fug A. Fugr g with Compa Lo- been workin A. ofessionals. and has e the t projects the ly 12,500 pr ergy sector Alaska sinc e importan proximate ge panies in Q. Are ther or has ed on next pa il and gas com designed to tly a part of Continu o services are y is curren 1970s. Our from compan early ct lifecycle, tly? the full proje to done recen support ent, through to developm exploration WEB ADS
Contact | Renee Garbutt, Phone 281-978-2771 | Susan Crane, Phone 907-770-5592 PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 7 continued from page 1 Pikka Schedule of Operations PIKKA PROGRESS % % & & ' & ' ' & 4 story). In its plan, Oil Search said it intends to ' $ / / / /4A =5 3 3) # 3% 3)) continue to operate Pikka, including the ) ' = 4 /A =5 )3 3) # 3% 3))% completed production facility and related ! / / / /4 A infrastructure. % = / ,! ! ! )3 3) # 3% 3)) The company had previously said dis- 5 cussions for possible facilities sharing on - + 4 /A 5 &3 3) # 3 3)) the 120,000 barrel per day development ' 4A =5 *3 3))) 3% 3))% were taking place with “current North & ' = 4= $ /5 3 3)) )3 3)) Slope operators.” Negotiations were to be ' 4= $ /5 3 3)) &3%3)) completed by the time a Pikka FEED, or ( /! @ ! /! ' 4 5 / = front-end engineering and design, deci- * *3 3))) *3% 3))) sion was made in the second half of this 4 5 / /4A 5 year. The timing has since been narrowed # !4= $ /5 3 3)) )%& down to the fourth quarter (see article in 4= $ /5 -3 3))% 6 +/ this issue titled “Oil Search, Conoco team up in Alaska.”) high and low pressure safety relief sys- underground injection control disposal testing and process fluid heating, will In addition to oil from the prolific tems. wells. occur at the drill sites. Nanushuk formation, the Pikka develop- A number of additional temporary Grind and inject facilities will be built ment will target the Alpine C interval, camps will be established to support con- on ND B. Nanushuk processing facility another one of six stacked plays in the struction and drilling activities In addition to accommodating drilling Multiphase product from the drill sites unit, per a 2016 statement by former oper- Offsite pioneer construction camps equipment and support facilities, the drill will be transported to the Nanushuk pro- ator head Bill Armstrong. will be near the selected mine site on an sites will have space for well testing cessing facility via multiphase pipelines. ice pad or on an existing gravel pad, equipment, stimulation equipment, Seawater and produced water separat- Three drill sites, 151 wells pending available space, Oil Search said drilling mud and cement tanks, produc- ed from the oil at the processing facility The leases involved in the actual pro- in its plan. These camps will be used until tion gathering facilities, diesel fuel stor- will be treated and transported back to the duction of oil are held by Oil Search. All the construction camps are installed and age tanks, a communication tower, cold drill sites via water injection pipelines to are state of Alaska leases, although in operational (up to two years) and house as storage, emergency response equipment, be reinjected into the subsurface forma- most cases the subsurface mineral estate many as 300 people each. process heaters, drilling laydown areas, tion to help with crude oil production. is jointly managed by the state and Arctic Construction camps capable of hous- temporary camps and offices. Separated gas will be used for fuel at Slope Regional Corp., the Native regional ing a total of 800 people will be on one or No processing of multiphase product the facility, and the remainder will be corporation for the area, with the surface more of the project’s gravel pads. The — a mixture of crude oil, natural gas and land owned by Kuukpik Corp., the Native camps will remain through the comple- produced water — beyond routine well see PIKKA PROGRESS page 8 village corporation for the community of tion of the construction and startup phase Nuiqsut. (two to five years), after which they will Per the Pikka development plan, which be decommissioned and removed from was submitted by Oil Search’s permitting the site. manager Julie Lina, the company has, or Drilling support camps will be on each anticipates having, an access agreement drill site. They will house 120 to 150 peo- in place. ple per rig and be used for up to 19 years The Pikka development will have three before being decommissioned and Nanushuk Project drill sites, A, B and C, removed. with as many as 151 production and The design life of the Pikka project is injection wells — 43 at ND A, 55 at ND “30 years or more,” Oil Search said. B, and 53 at ND C (see chart titled Pikka Schedule of Operations in the pdf of this Well sites story). The locations of the three drill sites Other significant infrastructure will were dictated by the configuration of the include the Nanushuk processing facility, oil reservoirs and defined by previous the Nanushuk operations pad, tie-in pad, exploration efforts, with consideration for infield pipelines, import and export site accessibility requirements and opera- pipelines, infield and access roads, a boat tional constraints. Drill sites are also ori- ramp and a potable water system. The ented with the long axis parallel to the Oliktok Dock will be used for offloading prevailing northeast/southwest wind barges transporting sealift modules to the direction to minimize snow drifting, Oil project. Search said But prior to these activities, screeding The drill sites might have additional will be done in front of the existing well slots to accommodate two Class 1 Oliktok Dock. Oil Search’s plan also said minor upgrades and maintenance to the existing road system may be required to facilitate transportation of sealift modules. Gravel for project development will be from one or more existing gravel mine sites, which will be permitted and operat- ed independently of the project. Permanent and temporary structures The Pikka development will include both permanent and temporary buildings. The Nanushuk operations pad will support fieldwide operations and will have the following: a 200-bed operations camp; office, warehouse and maintenance SHIP BEYOND THE RAILS. buildings; warm and cold storage build- FROM RAIL TO SEA TO ROAD, WE DO IT ALL. ings; water/wastewater treatment plants; communications structures; backup gen- The Alaska Railroad does more than you might expect. We ship freight to and from anywhere in North erators and fuel storage; and a helicopter America. Even places without rail access. And we handle all the logistics along the way. So whatever landing pad. The Nanushuk processing facility will it takes to get it there - barge, train, truck - you only need to deal with one point of contact and one include processing and utilities modules; invoice. So, next time you need to ship, sit back, relax and let us handle all the weight. metering and pigging facilities; power Call for a free quote today: 800.321.6518 | alaskarailroad/freight generation facilities; a truck fill station; construction material and equipment stag- ing areas; and a central control room. The processing facility will have either a sin- gle flare or dual flares to support both 8 PETROLEUM NEWS • WEEK OF AUGUST 25, 2019
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Creative photography for the oil & gas industry. judypatrickphotography.com 907. 258.4704 PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 9 continued from page 8 intermediate pier piles between abut- ments, Oil Search said. PIKKA PROGRESS The bridges will consist of steel gird- ers with precast concrete decks. towers will be approximately 30 feet at At the Kachemach River crossing, the the drill sites and 120 feet at the process- bridge is designed to accommodate boat ing facility and operations pad. COMMITTED TO traffic. Gravel roads The access road will include drainage structures to pass the expected flow along The Pikka development plan includes the road. Prior to construction, an engi- 12.4 miles of gravel infield roads — a 3.5 neer will walk and slope-stake the roads ALASKA’SALASKA’S GROWTH mile ND A road, a 2.1 mile ND B road, a to determine precise locations of drainage 5.2 mile ND C road, a 1.4 mile Nanushuk structures and determine on-site condi- boat ramp access road and a 0.2 mile tions for final layout. water source access road — to provide Typical drainage culverts will be struc- ANYWHERE, ANYTIME. all-season ground transport between the tural steel pipe processing facility, drill sites, and other Fish passage culverts will be designed project facilities. The project also calls at stream crossings where the Alaska for a 9.5 mile gravel Nanushuk access Department of Fish and Game determines road to provide all-season transport con- that fish are present, and design will be in necting the processing facility to other accordance with the department’s Title 16 infrastructure. fish passage standards. Gravel roads will be built to be 24 feet Flow velocities at culvert outlets will (up to 44 feet at the base) to 32 feet (up to be analyzed, and outlet erosion control 52 feet at the base) wide at the surface, measures will be designed as necessary to although roads could be wider at curves prevent channel degradation. for larger modules, resulting in widths Downstream scour protection, where within a range based on North Slope required, generally consists of articulated industry construction and safety prac- concrete block mats or other appropriate tices. material in Oil Search’s plan. Six road turnouts (three along the Typically, steel pipe culverts will be Nanushuk access road, one along the ND built during winter. A road, one on the ND B road and one on Multiplate culverts will be installed the ND C road) will be constructed to during the summer months to allow prop- allow safe access to project facilities dur- er compaction of gravel around the cul- ing movement of large equipment such as verts; however, temporary passage struc- drilling rigs. tures can be installed during winter, Oil Three gravel tundra access ramps will Search said, allowing continued flow dur- be placed at road turnouts near the drill ing construction of the permanent multi- sites to provide access for off-road travel- plate structure. ers. Cross-drainage culverts will be Snow ramps will initially be built for installed within the infield and access “tundra access and the gravel tundra roads to reduce impoundment and allow access ramps will be sited and construct- conveyance of surface water flow that ed based on areas of highest use by local intersects the road in order to maintain subsistence users,” Oil Search said. natural drainage patterns. Access and infield roads are designed to accommodate two-way traffic for use Ice roads and pads during “facility construction; drilling; and Ice roads will be used during construc- operations for mobilization of construc- tion of the pipelines, gravel roads and tion materials, drill rigs and drilling mate- bridges. rials, supplies, personnel, and, if neces- Approximately 190 to 280 miles of ice sary, emergency spill response equip- roads are planned during the construction ment.” phase. The Nanushuk access road will follow Standard duty ice roads on the North the existing Mustang access road for 4.7 Slope are a minimum of 6 inches thick miles, although the exact length could and an average of 12 inches thick due to vary slightly due to wider curves and terrain features, Oil Search said. other topographical features, Oil Search Ice roads for construction, materials said. and personnel transportation will be built Use of the Mustang access road will to support expected loads and protect the need upgrades to bring it up to minimum vegetation and organic soil beneath. design standards and improve road sur- The roads will be wide enough to safe- face condition, possibly involving expan- ly accommodate two-way vehicular traf- sion of the road base width and the addi- fic (minimum of 20 feet), drill rigs (min- tion of higher quality material to improve imum of 35 feet) and other traffic, as load capacity. required. Gravel roads will parallel the proposed The ice road season each year varies pipelines to facilitate year-round access depending on weather conditions and ice for maintenance, repair, monitoring, and, road completion times. if necessary, emergency response. Seasonal ice pads will be used to sup- Bridges and culverts port construction activities, including gravel placement, and pipeline and bridge The Nanushuk access road will cross installation. Ice pads will likely be adja- the Miluveach River and the ND C infield cent to bridges, at each major gravel pad, road will cross the Kachemach River on and every 3 to 4 miles along 170 and 245 foot bridges, respectively. access/infield roads and Nanushuk/infield Both bridges will be multi span structures pipelines. and will include pipe pile foundations at sheet pile abutments and several sets of see PIKKA PROGRESS page 10
ANCHORAGE MACHINE SHOP 907-336-3343 CONSTRUCTIONCONSTRUCCTION • ENERGY • ENGINEERENGINEERINGRING 1270 E. 64th Avenue Anchorage, AK 99518 ENVIRONMENTENVIRONMENTALTAL • EQUIPMENT • TRANTRANSPOTRANSPORTATIONORTR AATTIONIO [email protected] FEDERALDERAL COCONTRACTINGNTRACTING • NNANATURALATTURALURAL RESORESOURCESOURCES DEADHORSE MACHINE SHOP 907-331-7627 MACHINE SHOP SERVICES | PREMIUM THREADING At the corner of Spur & Spine TOOL TESTING | DOWNHOLE TOOL DESIGN Prudhoe Bay, AK 99734 CalistaCalistta Corporation • 907.275.2907.275.280028800 [email protected] MANAGED SERVICES | SHOP & DATA SUPPORT ISO 9001:2015 CERTIFIED www.northernsolutionsak.com 10 PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 continued from page 9 PIKKA PROGRESS INDICATIVE DEVELOPMENT TIMELINE
Construction support ice pads will FOR EARLY PRODUCTION IN 2022, FULL house field offices, break shacks, enviro- FIELD DEVELOPMENT IN 2024 vacs and field shops, and will stage con- struction equipment, vehicles, materials and supplies until gravel pads become 2018 2019 2020 2021 2022 2023 2024 available. Early EPS tie to adjacent facility Production Each construction support ice pad will Appraisal FEED be a minimum of 6 inches thick and one Main Full field Development Production acre or less in size. If space on an existing Ƈ Production from main facility gravel pad is not available, an ice pad Ƈ Putu drilled (COP) Ƈ Key permits Ƈ Construction and production from Early Production System (EPS) facilities: (full-field development) Integrated dynamic may be used to house the offsite pioneer Ƈ 3D seismic reprocessing Ƈ targeting 2024: reservoir modelling ¸ Initial EPS rate of ~30,000 bopd construction camp during winter seasons Ƈ Reservoir modelling ¸ Full field plateau rate of construction. Water for ice roads and Ƈ Early works programme Ƈ Build ~60 km pipelines and ~42 km roads Ƈ Build data base nameplate 120,000 bopd ice pads will be obtained from permitted Ƈ Contracting strategy Ƈ Construct new CPF or cooperative surface water sources. Ƈ Pikka B & C wells drilled development with adjacent operators ¸ Debottlenecking Ƈ Land access opportunities Ƈ Value engineering (wells and Ƈ EPS drilling lessons will optimise FEED commitment by Appraisal drilling, near field Pipelines facilities) Ƈ development drilling Ƈ end-2019 with FID in 2020 exploration The Pikka development includes two types of pipelines: infield pipelines, parallel to each pipeline-road crossing. around area with enough space for short which connect the drill sites to the pro- Sales quality oil will be Trenching will take place during the term parking of vehicles with trailers. cessing facility, and the Nanushuk transported to the tie-in pad near winter. Trenched materials will be tem- The ramp will also include an access Pipeline that connects the processing porarily sidecast onto an ice pad adjacent road (a minimum of 24 feet wide at the facility to existing infrastructure on the the Kuparuk central processing to the trench. Trenched materials will be surface) to provide access from the ND B North Slope via the tie-in pad. facility 2 via the Nanushuk taken off the ice pad and backfilled into infield road. All pipelines will rest on HSMs sup- Pipeline, where it will tie into the the excavation once trenching is com- An alternative boat ramp location was ported by one or two (such as at anchor Kuparuk sales pipeline for plete. identified by Nuiqsut whaling captains supports) 8 to 24 inch-diameter pipe pile conveyance to the Trans Alaska and search and rescue in 2019, Oil Search VSMs spaced approximately 55 to 60 Pipeline. All other facilities, equipment said. feet. Pipelines diameters will vary from as No new airstrip is proposed for Pikka. gauge sheet-metal jacket. Pipelines will Leases involved small as 6-inch for gas lift and gas injec- During construction, drilling and opera- have a non-reflective finish to reduce tion lines and 24-inch for multiphase tions the commercial airport in The project components and their reflectivity and potential impacts to lines. Deadhorse, approximately 52 miles away, affected leases are as follows: wildlife. Where feasible, pipelines will be par- will support air transport of project per- Nanushuk processing facility, ADL Where pipelines cross road embank- allel to gravel roads at a distance of sonnel and small materials and supplies to 392983, 392964; ments, coated and insulated pipelines will between 500 and 1,000 feet to minimize the North Slope. Nanushuk drill site A, ADL 393012; be encased in structural steel pipe casings caribou disturbance and excessive snow Personnel and materials flown into Nanushuk drill site B, ADL 392984; buried in the roadway. Casings for drift. Deadhorse will be driven to the project Nanushuk drill site C, ADL pipeline road crossings will extend at All pipelines will be externally coated area via the existing road system and ice 393029,392989; least 2 feet beyond the road embankment with 20 mils of fusion-bonded epoxy, roads until the gravel access road is com- Nanushuk operations center, ADL toe. covered with 3 inches of polyurethane pleted. 392964; Power and fiber optic cables will cross foam insulation, and wrapped in a 24- The tie-in pad will include a pig Tie-in pad, ADL 25654; under the road prism via a trench located launcher and receiver, a metering skid, Pump house pad, ADL 392964; transformer skid, a pipe rack, pumping Nanushuk boat ramp, ADL 391445; infrastructure, a shutdown valve, a lay- Nanushuk access road, ADL 390680, down area, a communications tower and 390681, 392964, 390692, 390691; the remote electrical and instrumentation Mustang road upgrades, ADL 390680, module. 25590, 25585, 25586; A boat ramp will be constructed in the Infield roads, ADL 391022, 393029, vicinity of ND B. Located on the lower 392982, 392984, 391445, 392985, ∙ Pinch Valves Kachemach River, the ramp was request- 392986, 392983, 392964, 392987, ed by the community of Nuiqsut in 2014. 392966, 392967, 392988, 392989, ∙ Tideflex Check Valves The boat ramp’s slope could be as 393012, 393013, 393014; much as 15% and will integrate erosion Miluveach River bridge, ADL 390692, ∙ Pressure Sensors protection such as armor rock and/or con- 390691; ∙ Expansion Joints crete erosion protection mats to stabilize Kachemach River bridge, ADL the side slopes. 392966, 392967 The ramp will be 20 feet wide at sur- Nanushuk Pipeline, ADL 390680, 907.277.7555 | 1120 E. 5th Ave. Anchorage, AK arcticcontrols.com face and include a small staging and turn- 25590, 392964, 390692, 390691, 25570, 25587, 25586, 25585, 25654, 25655, 25657, 25656; Infield pipelines, ADL 392962, InnovativeInnovvaativvee 392982, 392963, 392984, 392986, When the going gets tough,tough, the toughtough get … 392983, 392964, 392987, 392966, 392967, 392988, 392989 391553, Kairos, LLC’s Mobile Arctic Production System (MAPS) is an innovative 393012, 393014; solution to the high cost of oil production. Potable water system, ADL 392964; is a wholly-ownedwholly-owned subsidiarsubsidiaryy of Oliktok Dock barge offload area, ADL • Relieves the operator of large facility investment 355024. • Minimal facility installation and removal costs • An option fofor development of small or marginal oil fields Comment deadline Sept. 20 • An interim oil production solution On Aug. 19 the division also posted two other notices, these for private ease- • Potentialfo for reduced pipeline and infrastructure costs ments Oil Search had requested. One was for the Nanushuk processing Patented | Lease-based | Arctic Ready facility and the Nanushuk operations pad, requesting authorization to construct and operate both on state land outside the Pikka unit. The other was for the Nanushuk access road, again on state land outside the Pikka unit. Comments to the division, which must be written, on the Pikka development and the two easements are due by 4:30 p.m., Alaska Standard Time, on Sept. 20. l
Patent Number: 9662597 Learn more at www.kairos-nwp.com PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 11 continued from page 1 FISHBONE WELLS the onshore drilling location to the off- shore reservoir for each fishbone.” COURTESY BLUECREST COURTESY Under BlueCrest’s original fishbone concept, a complex formation of well- bores drilled through the rock provides one long horizontal “mainbore” along the bottom of the oil zone, from which multi- ple full diameter wellbores are drilled upward to penetrate individual productive oil sands. The finished well structure resembles a fishbone, with multiple “ribs” that flow down into the mainbore, then into the long reach well to the surface. It will take approximately four months to drill each trident fishbone well from spud to production, Johnson said. Development at Cosmopolitan will proceed more rapidly due to the trident fishbone well. “Each trident well saves five months to drill the wells that would reach the same reservoir penetration with just the fish- bone wells,” Johnson said. “Overall, it cuts the total drilling time down by more than two years.” Fishbone well possibilities The old-school method of opening up BlueCrest Rig No.1 all the productive sand members of a tra- ditional onshore development would be to execute, the fishbone approach. sand layers are separated by thin horizon- drilling and completion process that drill scores of wellbores, each penetrating tal layers of silt or shale that create barri- would optimally open up the multiple all of the layers. But BlueCrest is drilling Production headed upward ers preventing the oil from moving verti- layers of Cosmopolitan sands to produc- oil deposits under Cook Inlet from an As it looks forward to drilling its first cally between the oil-filled sands. tion utilizing long extended reach wells onshore surface location about three trident fishbone well, BlueCrest has drilled from onshore. miles away, a distance rendering scores of enjoyed a year over year production Unconventional location BlueCrest said hydraulic fracturing wellbores to be impractical and uneco- increase at Cosmopolitan. BlueCrest estimates that in an old was conducted in two of its initial nomic. Production data reported by the Alaska onshore basin such as West Texas, a con- Cosmopolitan wells, but the cost of the With its powerful purpose commis- Oil and Gas Conservation Commission ventional development of Cosmopolitan’s fracturing process was very high and the sioned directional drilling rig, BlueCrest said BlueCrest’s Hansen field averaged type and size of oil deposit would require small fractures were inefficient at creat- has accurately steered paths of wells 1,469 barrels of oil per day in June — the more than 100 individual wells. ing vertical flow paths between the throughout the reservoirs, while setting most recent month reported, down 14.2%, But Cosmopolitan’s conventional field stacked layers. new Cook Inlet records for long-distance 244 bpd, from a May average of 1,713, is in an unconventional location, which The fishbone ribs in the first BlueCrest drilling at Cosmopolitan. but up 83.4% from a June 2018 average has prodded the company to innovate. fishbone well penetrate the reservoir at a Drilling costs have fallen over time, of 801 bpd. BlueCrest had two wells in Many modern wells on Alaska’s North 110 degree angle, spaced 800 feet apart the company said. production in June 2018 and five wells in Slope and in other basins are initially — 15 acre spacing. Each rib penetrates BlueCrest confirmed that production in June. drilled downward from a surface location, the entire production interval, from the Cosmopolitan reservoir rock is “highly The advent of the trident fishbone well then turning horizontally to pass through Hemlock to the Starichkof. The oil flows consolidated, providing a strong capabili- is likely to hasten the production growth the reservoir, opening paths for oil to downward into the common horizontal ty of wellbores to remain open after the curve. flow from sands contacted by the well- main bore; no hydraulic fracturing is holes have been drilled through the rock.” The total combined thickness of the bores, BlueCrest said. Hydraulic fractur- employed. In addition to steering wellbores in any Cosmopolitan oil sands is more than ing is commonly employed to create lim- Each rib of the fishbone is equivalent direction desired, BlueCrest was able to 1,000 feet. ited paths for the oil to flow from other to a separate well drilled from the surface, sidetrack wells to create new well-paths Like many oilfields, Cosmopolitan oil nearby sands into the horizontal well- BlueCrest said. l branching off from an existing well. is deposited between the grains of sand in bores. After considering all these factors, underground geological layers stacked on But BlueCrest, over the past three Contact Steve Sutherlin BlueCrest conceived of, and was able to top of each other The individual oil filled years, has focused on developing a at [email protected] 12 PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 continued from page 1 questioned statements made by Alliance in leases, which had previously been part of mic for the unit; the hiring of a consultant an April 2018 exploration progress report the Hemi Springs unit, formed in 1983 by to evaluate drilling targets; starting the per- UNIT DEFAULTS that said the drilling delay arose from the ARCO Alaska and terminated in 1992. mitting for the drilling; initiating the complications of adding a lease to the unit. Alliance has a 100% working interest in preparation of a contingency plan; prepar- the state on Aug. 5 from Alliance’s surety The company said it had informed the its three leases, while Samuel Cade and ing cost estimates for the drilling project; bonding agent, Bowen, Miclette & Britt agency prior to unit formation that drilling Daniel Donkel have small overriding roy- identifying a contractor for the drilling; Insurance Agency of Houston, Texas. a well in the unit was premised on the divi- alty interests. The additional lease, which and hiring an expert for the eventual mar- In her decision to dismiss the March sion assigning the additional lease. The Alliance said in its April 2018 progress keting of oil from the unit. 25 default, the commissioner asked that company said it had understood that this report was integral to its exploration plan, Alliance also file its second plan of explo- lease would be assigned in the fall of 2017. sits at the northwest quadrant of what, with Oil potential ration update, which had been due by July Then division Director Chantal Walsh the three Guitar unit leases, would form a The division’s approval document for 1, no later than Sept. 1. Not doing so, she said that neither Alliance’s application to square shape. the Guitar unit said that Alliance had used said “will be grounds for another default.” form the Guitar unit nor the division’s ConocoPhillips and minority partners an interpretation of the logs from the Hemi Second default approval of the unit formation made men- were holding that fourth lease, ADL Springs well to infer the location of the oil- tion of the assignment of the additional 28249, because the Hemi Springs State water contact at the base of the Kuparuk C The second default was not cured. It lease, nor of the lease assignment being No. 1 well, drilled by ARCO in the lease oil accumulation and had used 3D seismic had been issued Feb. 7 for failure to meet integral to the unit plan of exploration. tract in the mid-1980s, was certified as to trace that contact into the Guitar unit work commitments; specifically, to drill a capable of producing hydrocarbons in leases — the seismic interpretation sug- well by March 31. The lease in question payable quantities from the Kuparuk C for- gested space for a potential oil accumula- In a May 16, 2018, letter, the division- The Guitar unit consists of three state mation. tion up dip of the oil-water contact. “The well head is on the Conoco lease, Although Alliance’s well would target but the bottom hole is on one of our leas- the Kuparuk C and Ivishak, oil shows had continued from page 1 production and is an excellent addition es,” Barry Foote, a member owner of been demonstrated in the West Sak and to the joint venture,” Dave Wall, the Alliance, told Petroleum News June 25. Ugnu across the region, the document said. ICEWINE JV managing director of 88 Energy, was In the company’s Guitar unit plan of Sam Nappi is listed in division paper- quoted as saying in the company’s exploration, approved by the division in lation of more than 1 billion barrels of work as the president of Alliance. press release. 2017 in conjunction with the unit approval, oil in place, based on the original well Barry Foote and Derek Foote, who “The Charlie-1 well has been Alliance said that it would drill a well in data and its evaluation of the existing heads up Alliance in Alaska and is based in designed to test all of the prospective one of its three leases in the unit, prefer- 3D dataset. Sterling, told Petroleum News in 2018 horizons identified in the Western Play ably during the winter of 2018, but no later On successful completion of the their preference was to find a partner to Fairway, giving benefit usually only than the winter of 2019, depending on the work program, Premier will have the come in and drill the exploration well with derived from a multi-well program,” permitting situation. option to assume operatorship. them. (Nappi and the Footes are the mem- Wall added. The well would penetrate the Ivishak 88 Energy will retain a 30% work- ber owners of Alliance.) 88 Energy has previously said that formation, the formation that hosts the ing interest in Area A. Derek Foote said the Guitar unit “is the Icewine’s conventional acreage con- Prudhoe Bay field reservoir, with a lateral Should the Charlie-1 well prove easiest North Slope play to get developed tained multiple stacked plays, includ- well targeting a seismic anomaly in the successful, Premier has the option to because it’s easily accessible and has an ing a Schrader topset play and the Kuparuk C. Depending on the results from earn a 50% working interest in Areas B existing well on one lease.” Torok slope and basin floor fan play. the first well, Alliance said it might drill a or C through spending US$15 million. The operator “should be able to cut the 88 Energy Alaska, whose general second well in the following year. Premier Oil’s recently released first time way down” that it takes to first oil, he manager of operations is Erik Opstad, And positive results from the first well half 2019 financial results showed an said, noting it would only require 6 to 7 is a subsidiary of Australian independ- would trigger a plan for delineation after tax profit of US$121 million, free miles of ice road to drill the well Alliance ent 88 Energy Ltd., a West Perth-based drilling, Alliance’s plan said. It did not cash flow of US$182 million, and had scheduled. “The staging area that BP ASX and AIM listed firm. mention access to a fourth lease, so if worldwide production of approximate- has is right there; there’s an existing pad.” More information on Premier can be Alliance had told someone in DNR or the ly 8,400 barrels of oil equivalent per Barry Foote told Petroleum News June found on its website at premieroil.com. division, there was no written record of it. day. 25 that although the unit could have an —KAY CASHMAN Alliance said in its April 18, 2018, “We are delighted to be partnering upside in the neighborhood of 200-300 progress report that it had taken several with a company of the technical caliber million barrels of oil, his company still steps to enable the well to be drilled by the of Premier. Premier has a strong track needed a partner to help cover the cost of March 31, 2019, deadline. Those steps record of delivering projects through to drilling a well. included moves to acquire the fourth lease, the acquisition and processing of 3D seis- Alliance gets fourth lease In June, Alliance said it had finalized a lease transfer document and production sharing agreement with ConocoPhillips on **)!/) !,-. ) - ' -& !..!, the fourth lease. In response to Alliance’s request for a ,*%! . !-$") ) ) "!(!).4!"/' .*,32+!,.$-!4) $ !).!-+*)-!4 *)-.,/ .$*)0!,-$"#.4 $. .!-.*, .$*) two-year extension, on Feb. 7 Feige had given the company a one-year reprieve until March 31, 2020. In her Aug. 19 letter to Alliance, Feige said she wanted Alliance to include the well in its updated plan of exploration. —KAY CASHMAN
*). . */"*#)-*)441111!-.*)-*'/.$*)- *(Rick Farrand (907) 343-2705
Providing integrated environmental and engineering solutions for the oil and gas industry ®
229-6000 PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 13 continued from page 1 year trying to determine if changes to the existing mar- here.” ket, which sets a price cap of C$999 per megawatt hour, Raymond James analyst Jeremy McCrea said the gas HOPE FOR GAS MWh, are needed. In 2016, AESO said the province sector is “on a lot of life support. There are some real under the New Democratic Party government of Premier concerns here that things need to get better ... and soon.” plants may stop short of a wholesale switch. Instead Rachel Notley was examining raising the cap to C$5,000 That comes amidst a round of meetings between TransAlta will favor hybrid plants. per MWh as it targeted a phaseout of coalfired power by Alberta Associate Natural Gas Minister Dale Nally and “Our view is that fundamentally (there will be a car- 2030. five producers on issues confronting the industry. bon tax) over the next 20 years no matter what,” she told The AESO said such a switch was “unlikely to be suc- Nally said the government is pondering various analysts. As a result, she said, TransAlta “cannot get off cessful in attracting investment due to increased price actions to minimize price volatility and restore confi- coal fast enough … and gas right now is extremely inex- volatility” at a time when the Kenney government has dence in the sector. pensive. scaled back forecasts for future generation needs. But he noted the gas industry is “complex with many “So our coal to gas strategy is completely predicated While that juggling continues, gas producers are turn- competing interests, which makes it challenging to find on our belief that it’s not smart to be in carbon intensive ing for help to Kenney’s United Conservative Party gov- solutions that will be supported across the sector.” fuels for the future,” Farrell said. ernment at a time when their commodity has traded from McCrea said there would not be “nearly as much buy Capital Power Chief Executive Officer Brian Vassjo a staggering low of 3 cents per thousand cubic feet to just in” for curtailments in gas markets as there was for the said the Edmonton based company plans to spend C$50 over C$2 at the AECO trading hub in Alberta. cutback of Alberta crude volumes, “so the government is million over the next two years to introduce gas at the in a bit of a tight spot.” giant Genesee complex south of Edmonton where it is Gas production dropping Underscoring the tangle facing the government, in 100% owner of two stations and joint owner of a third A new note from Raymond James reported that mid July a group of nine Alberta producers issued an with TransAlta. It is expected to start construction of two Canadian gas production was 14.1 billion cubic feet per open letter demanding the province support a plan under more units this year. day in the first week of August, down 1.5 bcf per day which royalty credits would be issued to producers who Vassjo said Capital Power expects to burn coal in the from a year ago and 2.1 bcf per day from March this voluntarily cut production to boost low commodity winter when natural gas prices are high and gas in the year. prices at a time when supply swamped pipeline capacity. summer when prices are “real low.” Phil Hodge, chief executive officer of Pine Cliff Big hope LNG Cost of switch questioned Energy, told the Calgary Herald there is a clear recogni- tion from the Kenney government that gas can “play a The big hope for years was the prospect of up to 20 The government of Premier Jason Kenney has pretty significant role in the overall health of the LNG projects going ahead in British Columbia, an shelved plans to redesign its electricity system, asking province. And we’re going through a pretty rough patch the Alberta Electric System Operator to spend the next see HOPE FOR GAS page 15 Oil Patch Bits
Lynden training center first to conduct rescue course tionship we have with the state,” Tyler explained. In 2015, the Center received accredita- tion from the state of Alaska Training and Education Bureau as the first third party provider The Lynden Training Center recently to offer state of Alaska hazardous materials training, a designation usually reserved for conducted a six day course in Kodiak for state agencies and fire departments. the Kodiak Fire Department. “We are The Kodiak Fire Department has received Lynden training for the past two years. Last extremely proud that the General year, after the department completed the Confined Space Rescue course, firefighters put Technical Rescuer class is the first of its their skills to the test when responding to a rescue on a fishing vessel. kind to be taught in Alaska for State of LYNDEN COURTRSY For more than 20 years, the Lynden Training Center in Fairbanks, Alaska, has provided Alaska certification,” says Tyler Bones, training to individuals, businesses and government employees all over Alaska and the director of HSSE. Lower 48. Experienced Lynden instructors educate, train and prepare people from all indus- The Fairbanks based Training Center tries to work safely, prevent accidents and to respond to disasters like chemical spills, train has been working with the Alaska Fire Marshal’s office for the past six months to become derailments and other emergencies. accredited to instruct the course. “It’s rare that new courses are added to the state’s Professional development courses with classroom instruction are followed by hands-on accreditation list, so our training center being the first shows what a great working rela- exercises and drills in simulated response situations. Companies involved in Alaska’s oil and gas industry
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HealthHealth FairsFairs + Blood Tests!TTeests! continued from page 1 TARIFF RATES Screenings,Screenings, WWellnessellness RResourcesesources & MorMoree for YYoYouroour TeamTTeeam When CINGSA went into opera- Invite AlaskaAlaska HealthHealth Fair,Fair, Inc. to ororganizeganize a WWorksiteorksite HeHealthalth FFairair for you!you! tion in 2012, the storage facility determined its initial rates using a Why hirehire AHF to organizeorganize your healthhealth fair? revenue requirement based on esti- Blood Tests mates of its likely cost structure. In Affordable,Affffordable, high-qualityhigh-quality,h-qualityy,, privaprivatete blood tests for your 2014 the utility conducted a true up of its tariff, based on actual costs. Comprehensive Test $45 stafstafftffff members. AHF workworkss with leleadingading clinical laborlaboratories,atories, the same ones used by local hospitals, to Now, with several years of service (27 panels! CMP, CBC, Lipids) under its belt, the facility can deter- bring you high-quality blood tests aatt a frfractionactionction ooff the costcost.. mine its revenue requirement using TThyroidhyroid ScrScreeneen (TSH) $35 LarLargestgest network of hehealthalth educaeducators.tors. AHF parpartnerstners with what is referred to as a “test year,” a year in which actual costs are used Average Glucose (A1C ) $25 200+ local ororganizationsganizations to deliver frfreeee hehealthalth educaeducation.tion. as a basis for estimating future costs. PProstaterostate (PSA) $25 LarLargestgest network of volunteers, including medical In the case of the tariff filing that prprofessionals.ofessionals. Haveave your stafstafffff ask questions and get RCA has now ruled on CINGSA Vitamin D2+D3 $50 answers about hehealth.alth. used 2017 as its test year.
Blood TTyTypingyping $20 40 yeyearsars of HeHealthalth FFairair eexperience.xperience. AHF deliverdelivereded One tricky issue involves ththousandsousands off successfulsucc events stastatewidetewide with an amazing For those 18 and older. factoring in the potential client sasatisfactiontisfaction rrateate ooff close to 100100%!%! More tests & schedule updates maintenance costs of the www.AlaskaHealthFair.org EEventvent fee is just $300! CallCall us today to rreserveeserve a dadate.te. facility’s wells. (907) 278-0234 AnchorageAnchorage - (907) 278-0234, FFairbanksairbanks - (907) 374-6853 Contention over some items However, contention has arisen between CINGSA and its customers, nabors.com and with the state of Alaska, over some cost items that CINGSA claimed should be factored into its revenue requirement. For example, CINGSA wanted to include the planned cost of an additional employee, and to recover costs asso- ciated with an RCA docket in which CINGSA had requested commission preapproval of some potential upgrades to its facility. In its new order, RCA has rejected some of these proposals. The commission now requires CINGSA to file a revised revenue requirement propos- al, taking into account the commis- sion’s findings. One tricky issue involves factor- ing in the potential maintenance costs of the facility’s wells. Determining the depreciation cost for the facility’s equipment is also difficult. If the facility ceases to be needed at some time in the future, as Cook Inlet gas supplies run down, the equipment could become obso- lete while still in working condition. But what might be the operational life of the facility? What rate of return? Another complex issue revolves around the rate of return that CINGSA might expect on the equity Safer. Smarter. invested in its facility. As with any return on investment, the higher the risk, the higher the return needed. But what are the risks associated with the CINGSA facility? Moreover, there are different meth- ods of determining a reasonable Better. return based on the risk assessment. RCA has ruled that a return of 10.25% is appropriate — this is the Our CDR2-AC rig reflects the latest innovations in Arctic drilling to provide our customers with midpoint between rates of return cal- culated by two different methods incident free performance and operational and technical excellence. and is slightly lower that CINGSA’s CDR2-AC is the first Arctic rig designed and built by Nabors specifically for Coil Tubing Drilling requested rate of return of 11.875%. operations. The rig was built to optimize CTD managed pressure drilling to provide precise control Commissioner Janis Wilson dis- of wellbore pressures for improved safety, decreased costs, and increased wellbore lengths. agreed with the other commissioners Combining safety and environmental excellence with greater efficiency means CDR2-AC can deliver on this point. She views CINGSA’s the high value results customers have come to expect from Alaska’s premier drilling contractor. proposed rate of return as reasonable when compared with the same rate Learn more about Nabors’ new drilling technologies at Nabors.com. of return that the commission approved for Enstar Natural Gas Co. —ALAN BAILEY PETROLEUM NEWS • WEEK OF AUGUST 25, 2019 15 continued from page 1 Sarah Palin. tax rates; gross value of oil or gas at point ing out of a recession.” Continuing investment had been a of production; transportation costs for oil Moriarty disagreed with the statement OIL TAX INITIATIVE concern as legislators worked on ACES. or gas; qualified capital expenditures; of sponsors that new fields would be held After ACES was enacted, oil prices exploration expenditures; production tax harmless, saying “any successful produc- fields and also said the proposed legisla- spiked and so did state revenues. But pro- values; lease expenditures; other adjust- tion, such as production from ANWR or tion would require filings by producers on duction levels dropped, as did invest- ments to lease expenditures; and tax large new discoveries will eventually be costs and revenues to be public. ment, at a time of high oil prices when credits applicable or potentially applica- under this new system. Make no mistake, Kara Moriarty, president and chief investment logically would have grown. ble. the entire industry is at jeopardy with this executive officer of the Alaska Oil and That led to SB21. initiative.” Gas Association, called news of the initia- Which led an initiative effort to repeal Comments from promoters She said this may seem like an easy tive no surprise, “but,” she said, “the pro- SB21 which failed in 2014. Had that In its statement on the initiative the fix to the state’s fiscal problems, but “this posed ballot measure would dramatically repeal been successful, ACES would proponents said the act would increase is bad policy and it is irresponsible to put increase taxes on the heart of Alaska’s oil have been put back in place. production revenues by $1 billion per forth a major policy proposal like this patch. No industry in Alaska can sustain The act under the current initiative year which, they said, would: “Permit where impacts have not been properly an increase of this magnitude without would apply to large established North commonsense solutions for funding evaluated. Smart policy should encour- causing a disaster for our state’s econo- Slope fields, specified as: “oil produced essential services, capital projects, and age new oil production from all fields in my.” from fields, units, and nonunitized reser- our PFDs.” Alaska which puts more oil in the “While the initiative is only two pages voirs north of 68 degrees north latitude “We should not be giving away tax pipeline. More oil means more revenue long, it represents an extreme policy shift that have produced in excess of 40,000 breaks and credits when we are unable to for the state, and that’s the best longterm that would undoubtedly have an impact barrels of oil per day in the previous cal- fund essential services such as education, approach to helping the state’s fiscal on industry, the level of which we are still endar year and in excess of 400,000,000 universities, senior services, public safe- problems.” evaluating.” barrels of total cumulative oil production. ty, rural electrical equalization, and the Moriarty said the increase on produc- For other oil production, the tax shall be ferry system,” said Jane Angvik, one of Governor not interested tion taxes would be more than 90%. unchanged by this Act.” the initiative committee members. Gov. Mike Dunleavy, a Republican, Company response Merrick Peirce, one of the initiative has said he is not interested in raising Minimum of 10% committee members, said: “We should be taxes but the administration has contract- BP Exploration (Alaska), in a state- The initiative act says that for produc- doing much better than we are, and if we ed with economist Ed King to study oil ment provided by spokeswoman Megan tion taxed under the act (i.e. large estab- are able to keep more of our production taxes. Baldino, said: “The state realizes the ben- lished North Slope fields) the tax due revenues within Alaska, it should help The Associated Press reported in July efits of SB21 through a thriving oil and each month will be no less than 10% of our economy, save and create more jobs that the contract with King involves the gas industry: more oil flowing down the gross value at the point of production for Alaskans, help fund capital projects study of potential tax changes and their TAPS than forecasted, jobs, additional when the average price for Alaska North throughout Alaska, and help fund our impact on the oil industry. Revenue new developments, and years of life Slope crude on the West Coast is less PFDs.” Commissioner Bruce Tangeman told AP: added to backbone fields like Prudhoe than $50, and an additional 1% for each “I know the Legislature is geared up. If Bay and corresponding state revenues for $5 increment in the average price of ANS AOGA opposes initiative they gear up, I have to gear up.” years to come. crude, with the maximum tax rate not to “This initiative raises taxes on over —KRISTEN NELSON “We are still reviewing the initiative, exceed 15%, which would be reached 90% of Alaska’s current production,” but our initial analysis shows a $1-$2 bil- when the price per barrel is equal to or Moriarty said in AOGA’s statement, lion tax increase to industry. These costs exceeds $70. adding that the act is being proposed “at will stunt investment and make Alaska This appears to change the net tax a time when Alaska is just barely crawl- far less competitive.” concept currently in law, which allows ConocoPhillips Alaska spokeswoman specified costs to be deducted from the Natalie Lowman said ConocoPhillips is gross value of oil at the wellhead before “still reviewing the language but the ini- the tax is calculated. continued from page 13 Despite Western Canada’s imbal- tiative appears to propose a very substan- The initiative act specifies: “No cred- ance of gas production that is weighted tial increase in oil taxes that would make its, carried forward lease expenditures, HOPE FOR GAS in favor of “dry” gas, there has been investing here less attractive. As a com- success in pursuing the associated light including operating losses, or other off- extravagant goal that was suddenly pany, we have responded to the positive sets may reduce the amount of tax due petroleum liquids in the Montney for- investment climate created by SB21: we tripped up by mounting opposition and mation that crosses the Alberta British below the amounts calculated in this sec- regulatory delays to projects at the have brought new projects on line, tion.” Columbia border. adding rigs to our North Slope rig fleet, same time the list of global LNG proj- One byproduct is condensate, which provided hundreds of construction jobs, Information would be public ects started shrinking. is vital to dilute oil sands bitumen, done significant exploration in NPR-A, One development worth following allowing it to flow in a pipeline, and The initiative act also goes after infor- and increased our production in the years is being led by Greg Kist, who was has seen output rise to 417,000 barrels mation. since SB21 took effect. The current base president of Pacific NorthWest LNG, a per day in March from 150,000 bpd It states: “All filings and supporting tax structure is working to keep Alaska venture operated by Malaysia’s four years earlier. information provided by each producer competitive for investment.” Petronas, when it was cancelled in However, Ian Archer, associate to the Department relating to the calcula- 2017. director of North American natural gas tion and payment of the taxes set forth in Proposal the ‘Fair Share Act’ Krist had left his post three years with IHS Markit, noted that if conden- Sections 3 and 4 shall be a matter of pub- earlier and taken time to “decompress,” sate accounts for 30% of a gas well The proposal, called the Fair Share lic record.” from which he has emerged as presi- volume and 50% of the revenue, that Act, a two-page bill, would make This is a change from existing statute, dent and chief executive officer of still leaves producers with 70% “they changes in the production tax system which restricts the Department of Rockies LNG Partners, a consortium of have to deal with.” enacted in 2013 in Senate Bill 21, under Revenue to only releasing information gas producers who hope to attract part- In as many words, the gas sector then-Gov. Sean Parnell. “if aggregated among three or more pro- SB21, the “More Alaska Production ners to build and operate a 12 million can’t win for trying. l ducers or explorers, showing by month or metric tons a year operation to come on Act,” replaced ACES, “Alaska’s Clear calendar year and by lease or property, and Equitable Share,” passed in late 2007 stream in 2026, requiring an invest- unit, or area of the state:” including pro- ment decision by the end of 2021. under the administration of then-Gov. duction amounts; taxes levied; effective
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Subscribe page EIA: Brent average • Marine Construction Services d $73/barrel in Vol. 23, No. 37 2 August; US crude 10.9 mil • www.PetroleumNews.co lion bpd m A weekly oil & gas newspaper based in Anchor age, Alaska Week of Se ptember 16, 2018 • $2.50 l • Platform Installation, Maintenance and Repair Newfi N ATU R AL GAS eld looking at Alaska; Begic h, Dunleavy weigh in; L48 sha • Pipeline Installation, Maintenance and Repair le boom tapering off Pt Thomson extens TEXA S-BASED INDEPENDENT ion NEWFIELD EXPL State stays 2 ORATION has people visit- 019 date in 2012 set ing Alaska tlement on Alaska L to look at the North Slope’s NG project progress logic geo- • Underwater Certified Welding potential. By KRISTEN NELSON Headquartered in The Woodlands, Texas, Petroleum News Also Sept. 10, the visiting scientists the Alaska Gasline fall savings are not handing out busi- Developme ness cards to he state nt Corp. announced t & Save everyone they meet, so the visit has stayed a deadline in hat its 2012 set E is very hush-hush. tlement - xxonMobil and AGDC h • NDT Services T with Point Thomson o ad agreed to Per ExxonM perator what the cor the big independent’s website, obil Production Co. poration called “certain ke Newfield T y is an oil company focused he settlement required a pla terms including price a on profitably growing liq- n for expansion of nd a volume basis uids-rich unconventional resource Point Thomson production b for a Gas Sale plays in the Anadarko and y the end of 2019 if a s Agreement,” captured in Arkoma basins of Ok major gas sale hadn • Salvage Operations lahoma, the Williston basin (Ba ’t been sanctioned by Jun a “Gas Sales Preced kken) of e ent Agre 2016. Late last year th ement” e state and ExxonMobi si s reached agre l gned Sept. 10. ee INSIDER page 10 ement on the company’s e plan xpansion . The settlement required interest o either increasing wners and construction of State looks for R production to 30,000 b a gas pipeline • Vessel Support and Operations IK gas interest; arrels per day of condensate between the fields). i (the current facilities sup ncludes Prudhoe port 10,000 bpd, although Moving natural gas , Point Thomso that rate has ra to Prudhoe was n rely been achieved) or mo ExxonMobil’s choic First time subscribers The Alaska Depa ural g ving nat- e. rtment of Natural Resour as to Prudhoe Bay for in Tha and G ces, Division of Oil jection there (requir- t work has now been defer as, is soliciting interest in po ing an agreement w red. tential royalty in-kind natura ith the Prudhoe Bay wor American Marine gas from the Prudhoe Ba l king y a nd Point Thomson units. see POINT THOMSON page The solicita l 12 tion, dated Aug. 31, asks E X PLOR A T for expressions of interes I O N & PRODU C T I O N by letter within 30 days. t DNR said it is consid ering whether to take the sta on future natu te’s royalty ral gas production from Pr mention this ad to receive $10 Tho udhoe Bay and Point mson in value or in kind. An optim “If D i NR st takes th i e ro c yalty in o mention this ad kind, u it is cu tlo Services Group rrent ly consi o dering k noncompetitive a contract,” solicitation says. ConocoPhillip that t The department said s ups GMT-2 forecast; m o consider a noncompetitiv oves ahead on Willo e contract it “first conside w, f urther explor whether there is a lack o rs By A ation f competition and whether a LAN BAILEY noncompet- mated peak produ Petroleum News ction for its Greater Mooses To oth 2 development in th see GAS INTEREST page no e off an e-book subscription or $20 8 n a highly up rtheastern National 6000 A Street, Anchorage, AK 99518 beat presentation to a Petroleum GAO qu joint meetin Reserve-Alaska from 30 estions lack of pre I g of the Alaska House and ,000 barrels of liminary Senate Re oil per day to 38,00 to receive 15% off. desi sources committees on Se 0 bpd. The federal gn revi pt. ew for polar iceb 10, Scott Jep Bureau of Land Man reakers sen, ConocoPhillips Alaska agement has pub- The U.S. Govern vice president o lished a final environmen ment Accountability Office f external affairs and tal impact state- report rais has issued a transpor ment for the p ing questions over the reli tation, overviewed his co roject, with a record of ability of the estimated mpa- decis cost and schedule for devel ny’s current exploration a ion anticipated in Octo oping new heavy polar iceb nd develop- ber. That for the U.S. Co reakers ment plans in Ala SCOTT JEPSEN could lead to a final in off the print edition. ast Guard. The Departme ska, and the resulting vestment decision Sec nt of Homeland major for the pr urity, the agency that inc uptick in the company’s e oject later this year, Jepsen ludes the Coast Guard, xpectations for its Mean said. • Environmental Services accepted the GAO’s f has future Alaska oil produ while the Greater Mooses indings. ction. Tooth 1 deve opment is m l- Currently the Coast G oving ahead, with first oil uard only operates two pola by anticipated icebreakers: the r capable Increased production es the end of the year. Peak pr Healy, a medium duty iceb timate oduction is expected as a b reaker, much used to run at about 30,00 ase for polar research, and Jepsen said that his com 0 bpd. 907-562-5420 the Polar Star, which is a pany has upped the esti- • Oil-Spill Response, Containment and Clean-Up heavy-duty icebreaker but is 41 years old. A th see CON the Polar S ird icebreaker, OCO OUTLOOK page 11 ea, sister ship to the Pola l P I PELI r Star, is laid up in port and NES & D O W NSTRE AM has become a source of sp are parts for the Polar Star. Deadhorse, AK • Hazardous Wastes and Contaminated Site Clean- CONTACT see POLAR ICEBREAKERS page 8 Trudeau C treads ca olville barges diesel to refully Slope Administration examinin Transportation co g options to salvage mpany Colville has transpo Trans Mountain, inclu Up and Remediation gallons of d rted 2 million ding an appeal iesel fuel by b arge to Prudhoe Bay on th ByGARY Slope, the comp e North PARK any has announced. This w Trudeau, firing bac deliver as the first bulk For Petroleum News k at his critics, y of fuel to the Slope by noted that Tr barge since the 1990s, and ansCanada’s Keystone XL possibly the largest shi pro Renee Garbutt pment of its type ever, the he future of ject was long ago app c la ro • Petroleum Vessel Services, e.g. Fuel Transfer said. The supply ompany rge-scale resource ved in barge, owned and pr Canada, but has be M operated by Crowley T ojects in Canada depends h come entangled in the arine, arrived at Deadho eavily Unite rse on Sept. 6. Because of on how his governme d States over a failure to en low water depth the shal- nt responds to a gage in s, the barge had to be mo federal court detailed consultations shore, ored 3 miles off- ruling that has stalled with communities with the fuel being carried progr along the pip to shore in smaller vessels ess on the Trans Mountain eline right of way. • Bulk Fuel Oil Facility and Storage Tank Onshore, the fuel was . pipeline pum “T 907-659-9010 ped into tanker trucks for expansion, said Prime M his is the way that the w to Colv transfer inister Justin orld is ille’s tank farm in Deadho Trudeau going and if w rse. . e can demonstrate clarity The U.S. Coast Gua JUST and rd and BP oversaw the ope “What we need is IN TRUDEAU certainty for businesses th 281-978-2771 Dave Pfeifer, C ration, said not just this rough the olville president and ch pipeline. We n process to the inv ief executive officer. eed to be able to build reso estors we will be able Maintenance, Management, and Operations More typically, fuel for us ects urce proj- to get more built,” e on the North of all differe he said. to Dea Slope is delivered nt types with appropriate s dhorse from a refinery in Va license,” ocial www.amarinecorp.com • www.penco.org ldez, using tanker trucks he told reporters. H Decision impacts communitie e said the objective is to e s see DIESEL DELIVERY page 7 nsure that Trans Mountain and other pr Trudeau called the co ojects do not get “bogged” urt decision on Trans down in endless co Mountain “frustrating a [email protected] urt battles. nd devastating” for com- [email protected] see TRA NS MOUNTAIN page 9 Anchorage Honolulu Los Angeles 16 PETROLEUM NEWS • WEEK OF AUGUST 25, 2019
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