ConocoPhillips Alaska has begun producing oil from the Alphine Field CD5 drill site, becoming the first commercial oil development on Alaska Native lands within the National Petroleum Reserve-Alaska (NPRA), the company said in a news release.
CD5 is the second new ConocoPhillips North Slope drill site to come on stream this month. First oil was announced at Kuparuk Drill Site 2S on Oct. 12, ConocoPhillips said.
Four wells are complete at CD5, with development plans calling for 11 more wells by early 2017. Peak gross production is anticipated at 16,000 barrels of oil per day (bbl/d). CD5 represents a total project investment of more than $1 billion, the release said. The project created more than 700 direct jobs and hundreds more support jobs during peak construction activity.
With the completion of CD5, ConocoPhillips is pursuing additional developments in NPRA. The company has received permits for its Greater Mooses Tooth 1 (GMT1) development, which lies about 8 miles west of CD5. A final investment decision is expected later this year. GMT1 is estimated to cost about $900 million and could produce up to 30,000 bbl/d gross at peak production.
In addition, the company said it has filed permits for development of a second drill site in the Greater Mooses Tooth Unit (GMT2) and is considering additional NPRA exploration opportunities.
The ConocoPhillips-led CD5, GMT1, Kuparuk Drill Site 2S, and the recently announced 1H NEWS (Northeast West Sak) development represent approximately $3 billion in new North Slope projects, the release said. Peak gross combined production when all of these projects are on stream is estimated at 40,000 to 50,000 bbl/d.
CD5 is located on land owned by Kuukpik Corp., the village corporation for Nuiqsut, with mineral rights owned largely by Arctic Slope Regional Corporation. CD5 is part of the Colville River Unit, which is operated by ConocoPhillips Alaska Inc. (78% interest), the release said. Anadarko Onshore E&P LLC (NYSE: APC) holds a 22% interest. Greater Mooses Tooth Unit is also owned 78% by ConocoPhillips and 22% by Anadarko Onshore E&P LLC.
Husky, the operator and majority owner of the White Rose Field, said it expects production there to ramp up to about 20,000 barrels per day after the start-up.
Producers completed 5,749 wells in Texas from January to July versus 6,514 in the same period last year, the Railroad Commission of Texas said on Aug. 16.
Companies added six oil rigs in the week to Aug. 16, the biggest increase since April, bringing the total count to 770, Baker Hughes, a GE company, said in its weekly report.