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Alaska

Accelerate first oil? – November 13, 2022

On November 2, Oil Search (Alaska), a subsidiary of Santos Ltd, submitted its proposed 2023 growth plan for the North Slope Pikka unit, which requires growth drilling to start within the second quarter.

Initially, ND-B’s Phase 1 drilling will goal the Nanushuk reservoir.

(See map within the on-line version as a PDF.)

According to POD 2023, signed by Mark Ireland, OSA’s Senior Vice President Subsurface and Exploration, the first effectively drilled might be a Class I underground injection management landfill effectively.

Approximately six to eight growth wells might be drilled from the present ND-B gravel plate and might be accomplished, stimulated and returned through the 2023 POD interval.

The 2023 POD interval runs one 12 months from February 1, 2023 to January 31, 2024. The POD was filed with each the Commissioner of the Alaska Department of Natural Resources and the President of the Arctic Slope Regional Corp. or ASRC submitted.

“During POD 2023…the detailed engineering, procurement and construction as part of Phase 1 will continue, along with planning activities for future phases,” OSA stated.

A taking part space or PA has not but been established throughout the Pikka entity, however in its 2023 POD operator OSA stated an software to determine a first Nanushuk PA might be submitted earlier than common manufacturing begins in 2026.

First oil earlier?

In a Nov. 8 Santos Investor Day briefing in Adelaide, OSA President Bruce Dingeman stated the Alaska staff is “ways to accelerate first oil.” in different phrases, to start out oil manufacturing earlier than mid-2026, which is the timeline the OSA gave to the Alaska Regulatory Commission on September 16.

Dingeman stated OSA had simply mobilized its first camp, a 185-mattress camp, to Pikka.

He additionally stated that the OSA “now proceeds to dig well basements for the wells previously mentioned.”

Dingeman informed attendees on the Investor Day briefing that the rig would arrive in April, citing Parker Drilling Arctic Operating LLC’s NOV ADS-10SD 272 positioned at Deadhorse Yard.

He additionally spoke concerning the low environmental footprint of the NB-D pad: “Our drill pad consists of 20-21 acres at surface. And that unlocks 10,000 to 20,000 acres below the surface.”

neighborhood initiatives

According to OSA’s POD 2023, the homeowners of working pursuits (OSA 51% and Repsol 49%) will proceed to undertake environmental research to “conserve biodiversity”, which incorporates packages within the following areas:

a. hydrology

b. fishes

c. water high quality

i.e. waterfowl

e. Subsistence fishing within the Nuiqsut case

f. caribou

G. Subsistence use within the challenge space

OSA will proceed to work with and seek the advice of with key North Slope stakeholders together with the North Slope Borough, Kuukpik Corp. and the neighborhood of Nuiqsut.

The firm frequently hosts occasions in Nuiqsut that emphasize the significance of wholesome communities, schooling and coaching alternatives and sustaining sustainable livelihoods, OSA stated, noting that it “maintains its strong, deep ties with various entities in Nuiqsut by meets them regularly and informs them about the project status . POD Ireland also wrote that in the POD plan year 2023 the company will “implement neighborhood initiatives in Nuiqsut to switch a bridge and full work on a sewage therapy plant”.

OSA will even set up a ship ramp and car parking zone on the east aspect of the Colville River to facilitate entry for neighborhood members to the gravel street system on the east aspect of the Colville River.

Three essential selections

In the POD 2023 submission, OSA included an annual report describing the operations performed as a part of the POD 2022.

Planned actions for the 2022 POD interval had been centered on finishing entrance-finish engineering and design or FEED, progressing allowing and acquiring funding commitments from the homeowners of the working pursuits for Phase 1 of Pikka.

The Commissioner of DNR and the Director of the Department of Oil and Gas made two essential selections in 2022 that may enable the event of the Pikka unit to maneuver ahead.

On December 2, 2021, the Commissioner of DNR issued a choice on OSA’s grievance in opposition to modifications in easement selections for the development of the seawater therapy plant and related pipeline challenge.

On March 29, 2022, the Director issued a miscellaneous land use allow that secured street entry to the Pikka unit for the development interval and past.

On August sixteenth, the working curiosity homeowners made a Final Investment Decision (FID) approving Phase 1 of the Pikka challenge.

This was a key challenge milestone for continued Phase 1 growth actions geared toward producing 80,000 barrels per day shortly after begin-up.

OSA has additionally already allowed entry to its Phase 2 and three ND-A and ND-C pads, though they do not have gravel for that.

Subsequent phases have the potential to double Pikka’s manufacturing to 160,000 barrels per day.

As a part of the Pikka 2022 sustainability initiative, OSA continued to guage greenhouse fuel discount alternatives and carried out them into the challenge design, leading to very low greenhouse fuel emissions in comparison with different international pre-growth initiatives.

In addition, OSA implements company initiatives unbiased of unit actions to offset part 1 greenhouse fuel emissions.


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