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page ANGDA puts study of route for page Exploration gets waist deep in April: page BG tells legislators LNG to 6 Gubik gas spur line out to bid 10 Anadarko done for the winter 8 Far East economic;West Coast not

Vol. 13, No. 27 • www.PetroleumNews.com A weekly oil & gas newspaper based in Anchorage, Alaska Week of July 6, 2008 • $1.50 Vol. 13, No. 16 • www.PetroleumNews.com A weekly oil & gas newspaper based in Anchorage, Alaska Week of April 20, 2008 • $1.50 Vol. 13, No. 6 • www.PetroleumNews.com A weekly oil & gas newspaper based in Anchorage, Alaska Week of February 10, 2008 • $1.50

● GOVERNMENT ● EXPLORATION & PRODUCTION ● LAND & LEASING Petroleum Club hosts book signing Latest Petroleum Directory ACMP under scrutiny Exploration moves Chukchi high five AMY SPITTLER

State seeks ways to improve program to address issues with 2003 reforms PACIFIC ENVIRONMENT State of Alaska asks for comments on two exploration license proposals Alaska OCS sale draws five international players, $2.7 billion in high bids By ALAN BAILEY “The coastal districts want to be able to By KRISTEN NELSON Petroleum News By ERIC LIDJI acres near Houston and Willow, north and east of write policies to effect change to projects Petroleum News Spectacular geology Petroleum News the Parks Highway. laska’s Division of Coastal and Ocean … and the way the state has implemented The state Division of Oil and Gas received both t began routinely enough for an Alaska oil and draws majors to Chukchi Management has launched a reevaluation of the plan, the districts have very little he state released information on April 14 proposals last April, and requested competing pro- gas lease sale with a seemingly too-small bid by The chips are on the table in the search for the Alaska Coastal Management Program, or about the two companies asking to explore posals this past December. Having received none, A room to write enforceable policies.” an unfamiliar company, followed by bids in the oil and gas under the remote Chukchi Sea, off ACMP. The reevaluation represents a two different underdeveloped the proposals will now both go out for public I —Randy Bates, director, Division T tens of thousands and hundreds of thousands of Alaska’s northwest coast. But, with ice-laden response to some issues surrounding changes in basins, one in Southcentral comment, which the state will accept through June of Coastal and Ocean Management dollars per block by five well known international water for many months of the year, a severe cli- ACMP enacted in 2003 and will likely result in Alaska and another in the Interior. New 13. players, most with Alaska operations or land posi- mate and no supporting infrastructure, why did further changes to the program, Randy Bates, BGI North America LLC is player tection of coastal areas are met. tions. oil companies place $3.4 billion at risk in the director of DCOM, told Petroleum News July 2. Jason Sielak, George Olemaun, Vernon Kaleak, Dave Evikana, requesting an oil and gas exploration Yukon, if you try Then bids hit the million-plus range; then the U.S. Minerals Management Service’s Feb. 6 “It seemed like the right time to reevaluate and Ekaterina Evseeva, Leah Zimmerman, Yury Viktorovich Yukhnovets, license covering around 72,443 acres in Multiple agencies Hugh Olemaun, Ivan Mikhailovich Atlasov, Yury L’vovich Vasilyev, BGI, or Berkeley GeoImaging LLC, is an tens of millions. Twenty million seemed high, then lease sale? make sure we’ve got the program structured the Meerim Kylychbekova, Harry Olemaun and Rachel James lean the Crooked Creek-Circle basin, east of the com- Former M-I Swaco Alaska manager and Petroleum Club of The ACMP process involves several state and Oakland, Calif.-based independent exploration $50 million. Somewhere along the way Shell and $100-a-barrel oil and an escalating world- way we want it,” Bate said. against the Olemaun whaling crew’s boat, outside of Nate munity of Central and south of the community of Anchorage president Craig Bieber hosted a book signing at the federal agencies working with 33 coastal districts Olemaun’s house in Barrow. See story below. and production company founded in 1998 by ConocoPhillips started duking it out over the same wide oil demand certainly help. But the key club on June 19 for his new novel, “Saylor’s Triangle.” See story in Under the terms of the 1972 federal Coastal Circle. around the state to ensure compliance with James Rector, who also teaches applied seismolo- tracts — sometimes far apart in bids, sometimes Oil Patch Insider below. Zone Management Act, all projects in Alaska’s LAPP Resources Inc. is requesting a natural enforceable coastal policies. In many cases the see GEOLOGY page 22 coastal zone require a review for ACMP consisten- Indigenous Russian gas exploration license covering around 21,080 see CHUKCHI page 21 see PROPOSALS page 18 Sheffield to lead AOGA for 2008- cy, to ensure that policies for environmental pro- see ACMP page 22 leaders take lessons ● LAND & LEASING 09; Craig Bieber novel ‘Saylor’s from Alaska Natives; ● GOVERNMENT ● NATURAL GAS Triangle’ makes Anchorage debut Ahmaogak sees stint Chukchi Sea ‘next step’ THE ALASKA OIL AND GAS ASSOCIATION named Ken with Shell as beneficial Foreign takeover blocked Sheffield, president of Pioneer Natural Resources Alaska Inc., as LNG or natural gas project? The latest Petroleum Directory will be mailed to Petroleum News its new president, effective July 1. SHELL PRESIDENT JOHN print subscribers in a separate envelope. View the Directory PDF at Norway’s StatoilHydro teams with Italy’s ENI in Alaska OCS lease sale HOFMEISTER wasn’t the only visitor to Canada blocks Minnesota firm’s purchase; signals policy shift for foreign acquisitions www.PetroleumNews.com The association’s other officers are first vice president, Doug Econ One: Pipeline along Alaska Highway probably trumps LNG plan basin with long-term growth potential, while also Alaska’s North Slope Borough in the last By ERIC LIDJI Suttles (president of BP Exploration advancing the Arctic initiative,” Engebretsen month. By GARY PARK Petroleum News (Alaska) Inc.); second vice presidents: By ERIC LIDJI values over the life of the project. “When it comes to decisions on whether Canadian Beaufort up for bids wrote. Pacific Environment, an environmental organization based in For Petroleum News Mark Hanley (Alaska public affairs manag- Petroleum News “In the end, it’s not just about the per- foreign purchases represent a net benefit ith 16 successful bids in the Chukchi lease unit value that you get. It’s about maximiz- San Francisco, brought a delegation of four Russian indigenous The Canadian government has reloaded the trap to see if it er, Anadarko Petroleum Corp.), John Zager he Web site for the Canadian government’s to Canada, my bottom line is this: Canada sale on Feb. 6, StatoilHydro, the world’s StatoilHydro continues partnership with ENI liquefied natural gas project can ing the total pie,” Barry Pulliam, senior leaders from the resource-rich Sakha Republic to Barrow and can repeat last year’s success when it lured Imperial Oil and (Alaska general manager, Chevron North ruling Conservative party carried a bold head- must retain jurisdiction and control of largest offshore oil and gas producer, final- StatoilHydro, through its U.S. subsidiary earn more on less, more or less. But economist with the consulting firm Econ Nuiqsut in late March to meet tribal leaders, organizations and ExxonMobil Canada to the Beaufort Sea with one of the W America Exploration) and Craig Haymes line “Defending Canada’s National Interest.” ly arrived in Alaska, home to some of the StatoilHydro USA E&P, Inc., bid nearly $57 mil- more and more, a big pipeline One Research, told state lawmakers June local residents. According to an Arctic Sounder article by Tamar T technologies that are vital to the future of region’s largest work commitments. (Alaska production A For the first time in 23 years since a previ- most promising and challenging offshore lion on 33 leases in OCS Lease Sale 193 for the through Canada can earn more on our industry.” Interest in the Northern Oil and Gas Directorate’s 2008 manager, 20 in Anchorage. “You can have a high see INSIDER page 19 prospects in the world. ous Conservative government enacted a law gov- offering of petroleum exploration rights will be concentrated Chukchi Sea on Feb. 6. ExxonMobil more, according to a legislative consultant per-unit netback, but on a low volume it —Canadian Industry Minister Jim Prentice The bids follow a string of complex projects for erning foreign takeovers of Canadian companies, on five parcels totaling 2.84 million acres in the Beaufort- The company partnered on 14 of its 16 high Production Co.); and testifying during an on-going special ses- doesn’t necessarily get you the same eco- the Norwegian oil company, and StatoilHydro sees JUDY PATRICK the administration of Prime Minister Stephen bids with ENI Petroleum USA LLC, the U.S. sub- sion on natural gas issues in Alaska. nomic value as if you have a little bit lower Enstar submits new Cook Inlet Mackenzie Delta area. treasurer, Rick Fox BILL WALKER Harper has blocked a deal. Now the question is whether this was pure the Chukchi Sea as a natural progression, accord- sidiary of Italian super major Eni S.p.A. Broken down: an LNG project sending per-unit netback on a much greater vol- In addition, bids have also been invited for one 203,000- (Alaska asset manag- gas contract to RCA for 2009-13 In a startling move, giving new meaning to the grandstanding, or an indication of how far Harper ing to Halvor Engebretsen, vice president for The winning leases sit about 37 miles north of North Slope natural gas to Asia could likely earn ume.” er, Shell Exploration and Production Co. The second time had better be the term “national interest,” the government rejected a will go in pandering to nationalist sentiment. StatoilHydro’s Arctic growth theme, who spoke to the Burger gas prospect. higher netbacks on each unit sold. But the lower vol- Pulliam’s opinion threads the gap between two see BEAUFORT page 19 Alaska). charm, because Enstar Natural Gas can’t proposed C$1.325 billion sale of MacDonald, Industry Minister Jim Prentice, credited with Petroleum News by e-mail on Feb. 7 from his Under the joint bids with ENI, StatoilHydro umes of an LNG project mean that over the long contrasting takes on an LNG project: a negative AOGA’s directors are: Chris Dettwiler and Associates, a Canadian aerospace being Harper’s most trusted adviser, said he was offices in Norway. term, an overland pipeline along the Alaska wait for the third time. On April 11 the Pacific Energy on fast track in will become the operator of any licenses in the Sonnichsen, Agrium Kenai Nitrogen company submitted a proposed tariff and firm, to Minnesota-based Alliant Techsystems. “StatoilHydro sees this as an opportunity to KEN SHEFFIELD Highway would probably produce higher overall see ECON ONE page 21 see TAKEOVER page 15 Operations; Kevin Hostler, Alyeska contracts to the Regulatory Commission of Alaska’s Cook Inlet basin achieve a competitive position in a new frontier see STATOILHYDRO page 20 Pipeline Service Co.; Giuseppe Valenti, Eni Petroleum; Mark Alaska for Cook Inlet natural gas supplies ● EXPLORATION & PRODUCTION Pacific Energy Resources got some critical paperwork out Gregory, Flint Hills Resources Alaska; Carri Lockhart, ● NATURAL GAS covering 2009 through 2013. of the way in the last few weeks, clearing the decks for its ● LAND & LEASING Marathon Oil Co.; Torgeir Opdahl, StatoilHydro; Joe Kilchrist, Enstar, the local natural gas distribution ambitious plans for Alaska’s Cook Inlet basin — a strategy Pacific Energy; Derek Evoy, Petro-Canada (Alaska) Inc.; Doug company for Southcentral Alaska, needs Finally, a jack-up rig for CI that includes buying the Rowan Juneau jack-up rig for Corsair Chapados, Petro Star Inc.; Steve Hansen, Tesoro Alaska Co.; Galvin on mediation the gas to meet a shortfall in its gas supplies Colleen Starring, drilling and launching a more aggressive exploitation and Pondering Arctic gas riddle and Vaughn Vennerberg, XTO Energy Inc. for next year. In 2006 the commission Enstar development program at Redoubt Shoal. AOGA is a non-profit trade association whose 17 members By KAY CASHMAN McGuire wants mediation; Revenue chief says Alaska first has to have position rejected a contract with Marathon that Unlike Redoubt’s previous owner, Forest Oil, which Prospect of ‘clean’ gas fueling Alberta oil sands looms over Mac, North Slope projects represent the majority of the oil and gas exploration, production, Petroleum News Enstar negotiated in 2005, a contract that would also have started viewed the offshore unit as a declining property worthy of transportation, refining and activities in Alaska. By KRISTEN NELSON duce a dirty one? in 2009. fter years of efforts by several leaseholders, a By GARY PARK Petroleum News Definition, not The suspicions in Canada and Alaska see INSIDER page 22 jack-up rig is coming to Alaska’s Cook Inlet. see PACIFIC ENERGY page 20 For Petroleum News see ENSTAR page 12 are heightened by the obvious ownership laska legislators are hearing from a number of mediation, please On April 15 Blake Offshore announced it had A t’s a question that has dogged the links between the Mackenzie and North constituencies as they debate, and approach a While Sen. Lesil McGuire, R-Anchorage, signed a three-year, $156 million contract with COURTESY BLAKE OFFSHORE Mackenzie Gas Project almost from Slope projects and the oil sands. vote on, a TransCanada Alaska license under Pacific Energy Alaska for Blake jack-up 151. BREAKING NEWS A has asked the administration to consider medi- BREAKING NEWS BREAKING NEWS the outset and is now bothering Three of the Mackenzie Gas Project the Alaska Gasline Inducement Act. ation before the vote on the Alaska Gasline The Louisiana-based offshore rig contractor said I Alaskans. anchor-field owners — Imperial Oil Many Alaskans want natural gas for in-state use the jack-up is expected to be mobilized for transport 4 Mega-bucks from oil this year: State of Alaska could Inducement Act license application by 7 Armstrong submits North Fork plan: Sets camp size 3 Dueling memos on AGIA application: LB&A attorneys It quite simply boils down to this: If (69.6 percent owned by ExxonMobil), — and they want it in a shorter timeframe than a TransCanada Alaska, fellow Anchorage sena- in December, and begin drilling in the spring. say TransCanada noncompliant; administration lawyers disagree gas from the Mackenzie Delta and the ConocoPhillips (a Canadian branch plant earn $10 billion-plus from oil revenues, says AOGA report main pipeline to market would provide. Many peo- and operations, to use many existing facilities, still need some permits Pacific Energy Alaska, a subsidiary of California- tors, Democrats Hollis French and Bill North Slope enters Alberta, what’s to of its U.S. parent) and ExxonMobil ple still favor an all-Alaska liquefied natural gas based Pacific Energy Resources, plans to drill its Former Alberta Wielechowski, have asked Denali pipeline — Blake Offshore jack-up 151 stop it being consumed in the energy- Premier Ralph Klein Canada (wholly owned by the Irving, Endicott LoSal™ testing: Before proceeding BP will verify project. Others believe the state should not spend 14 Klondike, Burger of interest: Conoco taking first steps Corsair prospect first, followed by Escopeta’s 13 Part 2 of Yukon Flats story: Basin 30 to 70 miles from 13 the line proposed by BP and ConocoPhillips hungry extraction and processing opera- Texas, supergiant) — all have obvious money on an AGIA license, which would provide up Kitchen prospect, Pacific Energy Chairman and CEO feet, Blake said. low salinity water flushes out oil left behind by traditional waterflood — to specify how its line would compare on towards Chukchi drilling, Shell 3-D includes Torpedo, north of Sivulliq TAPS, Doyon plans to move forward without land swap tions at the oil sands? ties to two of the North Slope owners, ExxonMobil to $500 million in matching funds in exchange for Vladimir Katic told Petroleum News April 17. If its three-well exploration program proves suc- AGIA requirements met by TransCanada, and And, by extension, that translates into an even and ConocoPhillips. meeting state requirements for the line, but should The rig, currently under contract to Linder Oil in cessful, Pacific Energy, which purchased all of Forest Canadian drillers try to regain luster: Schlumberger to do so before the Legislature reconvenes 17 $4M OKd to study in-state options: Alaska lawmakers 17 Asia threatens U.S. security: Alberta premier says Asia more telling question: Why, at a time of mounting That leaves Shell Canada (wholly owned by 17 instead back the Denali pipeline proposal put on the the Gulf of Mexico, was completely refurbished in Oil’s Alaska assets in 2007, could begin permitting concern over greenhouse gas emissions, would buying Saxon; takeovers not expected as Canada oversupplied with rigs see DEFINITION page 19 give ANGDA funds to investigate early delivery of North Slope gas 2006 and can operate in water depths of 11 to 250 commercial production at Corsair as early as late poised to take advantage of oil sands if U.S. bans unconventional fuel see MEDIATION page 18 2012. ● anyone think of using a relatively clean fuel to pro- see RIDDLE page 19 Petroleum News Delivers You’ve heard that newspaper and magazine ads “create awareness” and tell the marketplace you’re a player. 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Business Spotlight 20

Exposure in the weekly Petroleum News PETROLEUM NEWS • WEEK OF JULY 13, 2008 Cruz Construction, Inc. Business Spotlight Cruz Construction is a general contractor experienced in remote exploration support and Opti Staffing Group large-scale heavy civil projects. Its extensive logistical capabilities get the right people and Opti Staffing Group is the premier, full service equipment where they are needed. Cruz personnel provider in the marketplace. It was found-

Construction has been designated a 10-year COURTESY PHOTO ed on one principle alone: Individuals are the cata- “first responder” for the Alaska Division of lyst behind the success of any organizations goals Emergency Services due to the company’s ability and objectives, and therefore are the key asset that PETROLEUM NEWS WEEK OF MARCH 16, 2008 19 • FORREST CRANE • You make the List to mobilize statewide on extremely short notice. any organization possesses. Placing the individual at Jeff Miller graduated from Oregon State the center of focus for Opti Staffing Group’s own ● LAND & LEASING University (construction engineering manage- objectives and its internal employees’ career goals, ment, business degree) and worked for Wilder maintaining this regarding the aspirations of the Construction three years before joining the Cruz candidates it represents, and finding the right match operation in 2004. Jeff and wife Monica have between a client’s organizational goals and the peo- two daughters and a son; dad has great fun ple it hires, has led to a higher rate of success than • Your employees are spotlighted Jeff Miller, senior project manager other personnel providers and embodies Opti Oil Patch Bits coaching their athletic teams. He also loves working and playing outdoors, and his fre- RPO shows how industry plans Staffing Group’s motto: “Our success is determined by your success!” quent wintertime pratfalls provide great entertainment to bystanders. Avonly Lokan Founded by Avonly Lokan, a long time Anchorage resident along ,with founder her husband and Hanley named daughter, this way of doing business has led to the expansion of this business model and its Reasonably prudent operator standard, widely used in industry, denied for Point Thomson success rates in the Pacific Northwest and continues to challenge traditional thinking about coach of the year —PAULA EASLEY staffing and the role individuals play within the employment arena. • Your news gets in Oil Patch Bits By KRISTEN NELSON The US Youth Soccer Adidas Coach of The operator’s decision doesn’t have to be perfect. “It the Year program has recognized Pat Petroleum News has to be reasonable in light of the circumstances.” Companies involved in Alaska —PAULA EASLEY Hanley of Anchorage, hevron, one of the Point Thomson working interest unit own- Alaska, as its candi- The RPO also “requires taking into account the ers, provided an expert witness to talk about the reasonably interests of all the stakeholders,” including, in this and northern Canada’s oil and gas industry date for Region IV. ADVERTISER The program is C prudent operator standard at the Point Thomson remand hear- case, the State of Alaska. ing the week of March 3. PAGE AD APPEARS ADVER designed to recog- —Richard Strickland, P.E., president of The Strickland Group TISER nize top coaches Alaska Superior Court Judge Sharon Gleason ruled late last year ACE Air Cargo A Delta Leasing PAGE AD APPEARS ADVERTI throughout the that adopting the appellants’ (Exxon Mobil Corp., BP Exploration Air Liquide ...... Delta P Pump and L SER ...... easing in girls (Alaska) Inc., Chevron U.S.A. Inc. and ConocoPhillips Alaska Inc.) agreements,” he said. Even if one party had rights, he said in his Air Logistics of Alaska Dowland-Bach Corp. Natco Canada PAGE AD APPEARS Airport Equipment .19 and boys programs. experience those rights are always limited. Doyon Drilling Nature Conservancy, The . argument that the Point Thomson unit agreement mandates the rea- Alaska Air Cargo ...... 18 “I’m both honored PAT HANLEY Then new exploration wells would have to be drilled and new Doyon LTD NEI Fluid Technology sonably prudent operator standard “would run counter to the regula- Alaska Analytical Laboratory Doyon Universal NMS Employee Leasing and humbled by this data gathered: “They have to repeat the entire process,” he said...... Services ...... tory and statutory provisions that were in effect at the time of the Alaska Anvil ...... EEIS Consulting Nordic Calista ...... 15. . . . Engineers ...... 3 award,” said Hanley, president of Northern And, subject to changes in technology over those 15 years, Alaska Computer Broker Egli Air Haul North Slope Telecom . . . . Oil patch bits contract’s creation.” s ...... 3 Lights Soccer Club and head coach for the Strickland said he didn’t think a new operator would have a POD Alaska Coverall ...... Engineered Fire North Star Equipment ...... “The applicable effective regulation at the time of contracting in ...... 21. and Safety Services (NSES) . . .7 95 girl’s teams. “Soccer is the fastest grow- Alaska Dreams ENSR Alaska North Star Terminal & St 1977 required a determination by the State ‘that the agreement is vastly superior to the 23rd POD: “If it’s basically the same set of data . . .8 ...... ing sport in Alaska and there are many Alaska Frontier Cons Epoch Well Service Northern Air Cargo . . . evedore (NSTS) then you’re going to have the same thing,” he said. tructors s ...... 21 ...... great coaches throughout the state that are necessary or advisable in the public interest … and adequately pro- Alaska Interstate Cons Equipment S Northern Transportatio truction (AIC) ource Inc. n Co. .7 tects all parties in interest including Alaska,” Gleason said. Alaska Marine Lines . ESS Support Servi Northland Wood Products deserving of this honor. I share this honor ...... ces Worldwide RPO standard Alaska Railroad Corp. Evergreen He Northwest Technica with my players, parents, club, and coaches The testimony, however, provided insight into how industry .24 licopters of Alaska l Services Alaska Regional Council Fairwea Offshore Divers . . that touched the lives of the kids I coached develops projects — and how a consultant evaluates those develop- Strickland said there isn’t a textbook definition of reasonably pru- of Carpenters (ARCC) ther Companies, The ...... Alaska Rubber & Supply Flowline Ala Oilfield Improvements ska ...... 11 . . . . .4 over this past year.“ ments. dent operator. Based on his experience working on RPO standards,Alaska Steel Co. Foundex Opti Staffing Group he said the reasonably prudent operator “should try to maximize theAlaska Telecom Friends of Pets ...... P.A. Lawrence Alaska Tent & Ta An outside evaluation Frontier Flying Service ...... 7 Panalpina ...... recovery; he should use prudent technical procedures and sound eco- rp ...... NACLink goes Alaska Textiles PDC Harris Group nomic principles.” But technology changes: “I don’t think it’s cor- ...... 16 Richard Strickland, P.E., president of The Strickland Group, a Alaska West Express . . Peak Civil Technologi independent, Holthaus ...... 8 petroleum consulting firm, has a Ph.D. in petroleum engineering and rect that he could use one principle and 20 years later be still usingAlliance, The G-M Peak Oilfield Servicees Co . .24 ...... 14 named president that when technology has advanced. You continue to work the prob-American Marine ...... GBR Equipment Penco ...... has been consulting since the mid-1970s; fulltime since he left a ...... 16 ...... American Tire Corp. GCI Petroleum Equipme NACLink, a Northern Air Cargo sub- position teaching petroleum engineering at Texas A&M in 1982. lem using prudent technical procedures.” nt & Services ...... 16 Ameri-Tech Building Systems Great Northern Engineering Petrotechnical Resourc Among his clients, he is currently consulting for the State of Alaska, The goal is maximizing recovery using prudent technology and es of Alaska ...... sidiary, began operating as an independent Arctic Controls ...... GPS Environmental PGS Onshore ...... 16 . . . .2 company owned by NAC parent Saltchuk he said, on corrosion issues at Prudhoe Bay. sound economics, but in the context of the circumstances — includ-Arctic Foundations Hawk Consultants ...... Prudhoe Bay Shop & Storage Resources on March 1, a status it says Strickland told Commissioner of Natural Resources Tom Irwin ing rules in place and the contract. Arctic Slope Telephone Assoc. Co-op. H.C. Price ...... 4 PTI Group offers the busi- and Hearing Officer Nan Thompson he has consulted for major oil “That’s the mosaic that I’ve used to describe the situation that Arcticthe Structures Heating & Ventilation Sales ness new oppor- Arctic Wire Rope & Suppl Holaday-Parks companies, independent oil companies, lessors, lessees, state gov- operator is in when he makes his decision.” A range of results ASRCare Energy Servic y tunities for es Industrial Project Services ernments and national governments for 30 years. He developed an available to the operator and “the standard is of average prudence.” ASRC Energy Services Inspirations . . . Q-Z growth in the Alaska ...... early independent numerical model and used it to troubleshoot for Strickland said the operator’s decision doesn’t have to be perfect. ASRC Energy Services Jackovich Industr QUADCO logistics field. Under a new name, Alta Air Houston Contracting (HCC) ial & Construction Supply ...... 8 Aurora Geosciences Judy Patrick Photog Rain for Rent companies. “It has to be reasonable in light of the circumstances.” raphy ...... 14 Logistics, the firm is continuing to provide Avalon Development Kenai Aviation Salt + Light Creative . . In the process, he said, he learned that reservoir performance is The RPO also “requires taking into account the interests of all the ...... clients with innovative solutions through- Kenworth Alaska Schlumberger more than just what happens down in the reservoir — it also .19 out Alaska and the world. Stephanie stakeholders,” he said, including, in this case, the State of Alaska. B-F King Street Storage Seekins Ford ...... Holthaus has been named president and is involves decisions by the operator: “how he plans to develop; what Kuukpik Arctic Services Shaw Alaska ...... 17 Badger Productions transitioning from her position as a vice kind of data he collects; how he tests his wells; how he drills his Analyzing RPO Kuukpik - LCMF Spenard Builders Supply ...... 6 Baker Hughes president with NAC. She is filling out Alta’s wells”; as well as the economic situation when decisions are made LaBodega STEELFAB In analyzing whether an operator meets a reasonably prudentBombay Deluxe Restaurant 3M Alaska management team with General Manager Lister Industries and the political and regulatory environment. BP Exploration (Alaska Taiga Ventures operator standard, Strickland said there are three steps. ) Lounsbury & Associates Roslyn Mitchell and Project Manager Dave Over the last 15 years, Strickland said, “I’m really called upon to Brooks Range Supply . Tire Distribution Systems (T The first is whether the operator was prudent in his analysis of ...... Lynden Air Cargo . . Slyker. Calista Corp...... Total Safety U.S. Inc. DS) try to create the mosaic of not only the reservoir issues but also all relevant information; was the work performed in a prudent fashion? .23 Lynden Air Freight . . . . these overlying factors, including … how the decisions are made … Canadian Mat Systems (Alaska Lynden Inc...... 24. . . TOTE Or did the operator overlook something massive that’s goingCapital to Office Systems ) ...... 24 . .2 (and) the environment in which those decisions are made.” That Lynden International . . . . Totem Equipment & Supply ESI expands result in waste. Carlile Transportation Services Lynden Logistics ...... 4 .24 TTT Environmental work, he said, helps stakeholders “understand what happened or Based on that analysis, did he formulate a prudent plan ofCGG devel- Veritas ...... Lynden Transport ...... 24 Tubular Solutions Alaska to Anchorage CH2M HILL ...... how to go forward or, in many cases, how to hold their partners opment? . . . . .5 Mapmakers of Alaska ...... 24 Tutka Equipment Source Inc., based in accountable for their actions.” Colville MAPPA Testlab Udelhoven Oilfield Systems S Fairbanks, recently expanded its offices to CompanyAnd last, in lookingList at the POD from a larger perspective,CONAM from Construction Marathon Oil Unique Machine ervices Anchorage, and appointed Ken Pugh and the interest of all parties, “would carrying out the POD be prudent?”ConocoPhillips Alaska . . . . Marketing Solutions Univar USA The state’s alternatives ...... 10 Risk and uncertainty play into the decision-making process,Construction he Machinery Indu M-I Swaco URS Corp. Jeff Johnson as its A Team in Anchorage. Cosco Fire Protection strial The Anchorage store is in the Huffman Strickland said he thinks the state has alternatives to terminating MRO Sales ...... Usibelli said, and offered a brief tutorial on project design to illustrate.Crowley Alaska ...... 8 U.S. Bearings and Drives Exposure in the semiannual Petroleum BusinessDirectory Park, 12201 Industrial Way, Unit the Point Thomson unit — the issue was remanded to DNR to allow Data accumulation is the first step — in the case Cruz of Construction Point Victaulic D1. ESI, an Alaska-based firm, is the exclu- the Point Thomson working interest owners to suggest alternatives Thomson drilling and logging of the exploratory well at the field, the N-P WesternGeco ...... sive Alaska distributor for Kubota Engine to termination. core that was taken from some of those wells, fluid samples and Nabors Alaska Drilling . . . Weston Solutions ...... 15 and, among other things, specializes in ...... 13 XTO Energy He said the state could accept the 23rd plan of development; or if eight 3-D seismic surveys. Then there’s data reduction, he said: all NANA/Colt Engineering designing and testing Arctic products, the state doesn’t like the 23rd POD it could propose changes or pro- of those 3-D seismic surveys are combined into one usable unified All of the companie including the North Slope’s top-selling indi- pose its own POD. s listed above advertise o rect fired heater. package; databases are built of the core data, the well data and the with Petroleum New n a regular basis People have said that if the unit were terminated it would take 10 fluid data; and the logs are digitized. Then that data is analyzed: The s years to get to where the present owners are, but Strickland said he seismic data is interpreted, for example. NAC appoints thinks it would take longer than that, perhaps 15 years. Once you Then all of the data is synthesized: A geologic model is built. “A resolve clear-title issues, and the acreage is leased, then the lessees new chief huge amount of science goes into building that geological model and have to negotiate and create a new unit, he said. it’s come so far over the last 20 years,” Strickland said: It’s a long PETROLEUM DIRECTORY • July 2008 On March 1, David W. Karp stepped up Then you have to shoot new seismic, because even if one of the ways from three wells, a base map and a pencil. as the new president and chief operating present Point Thomson lease owners were part of a new ownership officer of Northern Air Cargo. Karp will be Then reservoir models are built: The geological input is put into STANDLAONE PHOTOS group, seismic is proprietary and “has very specific agreements responsible for all operational and financial simulation models so that cases can be run, looking at different pos- Page 46 about what it can and can’t be used for. I would be astounded if this performance for NAC and its two sub- sibilities. sidiaries, Northern Air Maintenance Services seismic were not shot under proprietary conditions and proprietary NEWS in brief see RPO page 20 COMPANY and Northern Air Aviation Services. A life- PETROLEUM DIRECTORY • July 2008 STEELFAB adds biggest burning table in Alaska long Alaskan, Karp has served as senior Udelhoven acquires TNM vice president and chief operating officer of Page 18 NAC for the last two years. NAC’s outgoing In late 2007, Udelhoven Oilfield rth PETROLEUM DIRECTORY • Vol. 13, No. 1

president, William Dix (Bill) Fowler, was System Services Inc. acquired True No CLARK JAMES MISHLER appointed to the position of executive Management LLC. Active companies Both firms are sponsor-Alaska Business Region and will Page 45 continue to work with NAC and its affiliat- Phone: (800) 478-4124 (within Alaska) Anchorage-based, pro- AADE combines good food Contact: Sam Egli Fax: (907) 283-5267 viding project/con- ed companies. NAC operates a fleet of upport E-mail: [email protected] ide, Air Passenger/Charter & S Phone: (907) 246-3554 struction management Boeing 737’s and Douglas DC6 aircraft Fax: (907) 246-3654 Air taxi services provided since 1961twin state w E-mail: [email protected] mostly Cook Inlet. Single engine and • Your news gets featured services to the Alaska, throughout Alaska and has offices in Website: www.egliair.com a wide Bonanza. Lower 48 and interna- Air Logistics of Alaska and funAnchorage, for Bethel, Fairbanksworthy and causes 1915 Donald Ave. Serving Alaska since 1982, we performng heli- tional oil and gas indus- Deadhorse. Fairbanks, AK 99701 variety of flight operations, includi nd Lynden try. Now a UOSS divi- PETROLEUM NEWS Phone: (907) 452-1197 copter and airplane charter, aerial survey, load a Alaska Marine Lines Alaska Railbelt Marine sion,TNM’s contracts JIM UDELHOVEN The American Association of Fax: (907) 452-4539 specialized operations such as externall filming Editor’s note: See full stories in the work, powerline maintenance, aeria Alaska West Express and employees trans- Drilling Engineers Alaska chap- Contact: Dave Scarbrough next edition of Petroleum Directory, a Phone: Anchorage: (907) 248-3335 and videography. Lynden Air Cargo • Company photos promote ter has confirmed another suc- Lynden Air Freight ferred to UOSS, includ- Petroleum News magazine that is E-mail: [email protected] ing Lee A. Gabrielson, cessful Fin, Feather, Fur, Food Helicopter contract and charter services. Evergreen Helicopters of Alaska Lynden International published twice a year. Lynden Logistics co-founder and presi- Festival.The annual event was 1936 Merrill Field Dr. Alaska Air Cargo Anchorage, AK 99501 Lynden Transport dent of TNM, who is held May 16 at Kincaid Park. 6441 S. Airpark Pl. de table Horizon Air Cargo Contact: Sabrina Ford, president Out of 24 participating teams Anchorage, AK 99502 now a UOSS project n Alaska. P.O. Box 68900 E-mail: [email protected] ng table with a 55-long, 10-foot-wi Contact: Jeanine St. John manager and oversees l, stain- Cameron - TSA took first place Seattle, WA 98168 of Contact: Dave Sell, sales LFAB has replaced its 45-foot lo e largest capacity burning table i Phone: (907) 245-1544 Contact: Matt Yerbic, managing director E-mail: [email protected] your business e market, for the best dish, Burgoo BBQ, the TNM operation. Anchorage-based STEE ecessor the distinction of being th l is burned.) The table burns stee Fax: (907) 245-1744 and alu- cargo Phone: (907) 257-1500 Gabrielson received that steals from its pred the plasma fuel is ignited and omputer-guidedstee rate possible on th the BP Wells Team took second E-mail: [email protected] Phone: (206) 392-2705 or 800-2ALASKA Fax: (907) 279-6816 companies (In the adjacent photo, underwater at the fastest, c ng all kinds of steel, stainless steel The combined scope of the Lynden his bachelor’s degree in JIM GILBERT d their specifications and designs place and the MI Swaco team Fax: (206) 392-2641 Nome office: (907) 443-5334 ckload less steel and aluminumtest and largest capacity for cutti includes truckload and less-than-tru , inter- engineering from Utah apacity also allows for direct fac- took third.The attendees voted E-mail: [email protected] Airlines office: (907) 257-1500 giving STEELFAB the fas ate shapes. “Customers can sen highway connections, scheduled bargesand char- direct link to the Internet. This c ress release. for the best dessert, which Website: www.alaskacargo.com Website: evergreenaviation.com ment State University and minum in straight or very intric modal bulk chemical hauls, scheduled tional A semiannual supple Award winning cargo services to more places, brings to UOSS over 25 directly to the table because of ations,” the company said in a May p went to Unique Machine’s tered air freighters, domestic and interna t in more often, with more lift to, from, and within Kenai Aviation forward- tory troubleshooting and interac apple pie. Three judges deter- air forwarding and international sea • You’re included in the years of extensive engi- s a the state of Alaska. P.O. Box 46 neering and project responsible for account managemen mined the winner of the Kenai, AK 99611 ing services. July2008 Barrow, Kotzebue, and Nomein Anchorage.as well a Showmanship Award, and the Egli Air Haul Contact: Bob or Jim Bielefeld management experi- engineers,”said Hess’ Scott Heck,produc- senior variety of industries here rate unanimous choice went to the P.O. Box 169 Phone: (907) 283-4124 ence associated with vice president, exploration and She will be based at NAC’s corpo Schlumberger King Salmon, AK 99613 pipeline construction tion technology. and maintenance, and headquarters in Anchorage. ’s largest“Schlumberstones”. The Tony Bowman, president of tions, says f module fabrication. Northern Air Cargo is Alaska Nordic-Calista “Nordic Vikings” buyer’s guide LEE A. GABRIELSON Schlumberger Information Solu ess in a to Jim Udelhoven, who all-cargo airline, operating a fleet o were the first runner up. his company will “partner with H es to Boeing 737 and Douglas DC6 aircraftout Alaska.Charities receiving donations Categories in this directory. . . . Process Equipment ...... founded UOSS on the long-term agreement as they defineerpreta- and ert multiple destinations through . . . . Fire Protection ...... Procurement Services ...... Kenai Peninsula in 1970, continu from the proceeds are Beans Production Equipment ...... deploy their next generation int Air Passenger/Charter & Support ...... Freight/Shipping & Cargo ...... serve as CEO of UOSS, and Jim Gilb Café, Downtown Soup Kitchen Public Relations ...... tion platform.” Architecture ...... Fueling Services ...... Pumps ...... remains its president. ink for Unique Machine GM Hanleyand Kid’s Kitchen. Scholarships Arctic Engineering ...... General Oilfield Supplies ...... For more on Schlumberger, check its Real Estate ...... and Knowledge Box Arctic Gear ...... Geophysical & Geological Services ...... website at www.SLB.com.The l Recycling Waste Management ...... named coach of the year Aviation Fuel Sales/ Bulk Diesel ...... Health Care Professionals ...... Scholarships are awarded in the Reporting Software ...... Listings section Schlumberger signs long-term Hess is www.hess.com. Bearings ...... Helicopter Contract/Charter Services ...... In March, the US fall. Restaurants ...... Buildings – Lease Space ...... Hoses, Hydraulic & Industrial ...... Rigging Supplies ...... service contract with Hesslogical, Youth Soccer Adidas The AADE was founded in Buildings – Modular ...... Industrial Gases ...... Right-of-Way Maintenance ...... Northern Air Cargo adds Coach of the Year pro- New Orleans in 1978 and is Camps, Catering & Lodging ...... Industrial Parts & Supply ...... Schlumberger will provide geong, eco- Safety Equipment & Supplies ...... Cellular Communications ...... Information Technology Consulting ...... geophysical, reservoir engineeri tware gram recognized Pat made up of an affiliation of Seismic & Geophysical ...... Deedre Nicola to sales team Chemical Analytical Lab ...... Inspection Services ...... Hanley of Anchorage, nine independent chapters, Shop/Storage Space ...... nomics, drilling, and productioneement sof Chemicals ...... Instrumentation Systems ...... On Feb. 5 Northern Signs & Promotional Material ...... for Hess Corp. under an agr ren’t Alaska, as its candidate including Alaska, with over Civil & Hazardous Waste ...... Laboratory Services ...... Air Cargo announced it Clockwise from top: Soil Stabilization ...... for Region IV. 5000 members that are Commercial Diving ...... Lodging ...... signed June 13.Terms of the deal we Shlumberger’s “Schlumberstones” Space Design/Planning ...... had hired Deedre Communications ...... Logistics ...... disclosed. t Hanley is general licensed and governed by an Nordic Calista’s “Nordic Vikings” Steel Fabrication ...... Nicola to complement Computer Services ...... Machining ...... and manager of Unique PAT HANLEYAADE National Board.The Unique Machine provided food Steel Sales ...... The pact includes data managemen Construction Equipment & Materials ...... Maintenance ...... their statewide sales and games for families Surveying & Mapping ...... services and enhanced application Machine LLC, or UML. Knowledge Box is a traveling Construction Project Management ...... Management Consulting ...... team. Nicola has MI Swaco team serving etouffee Telephone Equipment & Sales ...... The program is exhibit showcasing the many Consulting ...... Maps ...... workflow support. Hess will deploy and fireweed cobbler Temporary Personnel Services ...... worked in a variety of Contractor – General ...... Marine Services & Construction ...... GeoFrame reservoir characterization,E designed to recognize top coachesaspects of the oil and gas indus- Tire Sales & Service ...... sales and marketing Contractor – Pipeline ...... Mechanical & Electrical Inspection ...... co- throughout the United States intry, girlsnal including andand teacher resources, Training ...... Petrel seismic to simulation, ECLIPS Photos by Control Systems ...... Medical Facilities & Response ...... capacities for the past DEEDRE NICOLA ...... Underwater NDT & Photography ...... reservoir simulation, Merak project e boys programs at the state, regiohands-on activities and interac- Amy Spittler Drilling & Well Services ...... Medical Services ...... seven years as an ...... Underwater Welding ...... national levels. tive lessons correlated to state Electrical ...... Meetings & Conventions ...... nomics, as well as OFM and Drilling ...... Vehicle Sales/Rental/Repair ...... Alaska resident with a Employee Services ...... Metal Distributors ...... Office softwares. of and National Science Standards...... Welding ...... background in hospitality. She will be Employment Services ...... Mud & Mud Logging ...... nd The curriculum is geared ...... Weld Repairs/Manufacturing ...... “We need a comprehensive suite Energy Services ...... Office Furniture ...... toward all grade levels and will Wire Rope ...... software tools for our geoscientists a Engineering Services ...... Oilfield Services ...... be the organization’s next Environmental Engineering ...... Photography ...... national initiative. Contact Environmental Response & Cleanup ...... Pipe, Fittings & Thread Technology ...... OIL COMPANIES Environmental Supplies ...... Pipeline Maintenance ...... Dallas Rhodes,AADE national Operators ...... Equipment & Heavy Hauling ...... Plumbing ...... representative, for further infor- Equipment Sales/Rental ...... Power Generation ...... mation regarding company Expeditor/Clerk Services ...... sponsorship at [email protected]. news briefs

NEWS STORIES

PETROLEUM DIRECTORY • July 2008

Page 10 Company profiles Attention to operational techniques, productivity and safety pays off for Offshore Divers A.Yes, we’re expanding to There’s no waiting for a warm, sunny day in the oilfield commercialoffshore diving North business Slope in sup- If your annual contract exceeds $7,100 DIVERS port of Shell’s drilling opera- The principals of Offshore tions. Divers worked in the North Sea, Gulf of Mexico, Egypt, New Q. Is the company chang- Zealand, South America and ing any of its services? many other oilfield areas before COURTESY OFFSHORE starting the company.With that A. No. Offshore Divers has experience they brought the increased gross revenues each best of international safety and year since its inception in We’ll profile your company We’ll have our writers work with you on a operational techniques to 1998, so we believe we have a Alaska’s oilfield diving chal- good business model and lenges. should keep on doing what we do best. Q.Where is Offshore Divers two-page Q&A company profile that will appear in the Petroleum Directory. located? Q.What is your company’s main strength? A. Our operation is based in Anchorage,Alaska, at 5400 A. Our main strengths are Eielson Street. our efficiency and our unparal- Afterwards, you can frame it or use it as a company brochure or flyer. leled safety record. Q.When was the company founded, who founded it and Q.What new markets, what was its original name? clients and/or projects did your company attract in the A. It was founded in 1998 by last year? Don Ingraham and Leif Simcox John Juettner emerging from ice during recovery operations on the North Slope as Inlet Offshore Divers.We Service Co., XTO Energy,Marathon Oil, BP, A.We were the only diving company later shortened the name to Cook Inlet Pipeline, Crowley Maritime and approved by Shell for Alaska Arctic diving Offshore Divers. State of Alaska.Attention to safety and pro- in support of the company’s drilling oper- We’ll give you free online advertising When Petroleum News readers click ations.We have a three-year contract for Q.Who heads up your company and duction has led to many sole provider contracts with large oil and marine com- this work. who is on its senior management team? panies. Q. Has the company invested in any A. Don Ingraham is general manager Q. How many employees new technology in the last two years? on articles each week they will see your ad, which will appear in rotation and Leif Simcox is operations manager. does your company have? A.All inspection and NDT equipment Q.What services does A.We employ up to 35 are the newest technology.We don’t hesi- Offshore Divers perform? during the Cook Inlet season. tate to rely on the best equipment avail- able. One example of technology provid- on the current story pages. The size of your annual contract determines A. Primarily oilfield com- By Paula Easley Q. Describe your essen- ing an increase in both safety and produc- mercial diving. Underwater tial equipment in general tivity is our ADCP Doppler current profil- construction, platform Matt Holta provided information terms. for this article er.This $20,000 unit allows the diving inspection, pipeline supervisor to view the water speed and repair,nondestructive A.We operate from an 80-foot dive sup- direction simultaneously from the seafloor the size of your online ad. testing (NDT) and salvage to the surface.This not only permits port vessel. Our main equipment consists work. Offshore Divers now performs the of decompression chambers, compressors, longer bottom times, but allows the super- majority of the commercial diving work in inspection, welding and construction visor to warn the diver of dangerous cur- the main oilfield areas of Cook Inlet and equipment. rents which may be developing above or Valdez. below the diver.Offshore Divers is the Web ads Q. Is your company expanding any of only diving company in the United States Q.Who are the company’s main its operations and/or locations? to use an ADCP in this manner. clients?

A. Chevron, Shell Oil,Alyeska Pipeline

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