Eni SpA (NYSE: E) said Jan. 3 it plans to boost its total Alaska production following an acquisition offshore the state’s North Slope coast.
The Italian oil major agreed to acquire the assets consisting of 70% working interest plus operatorship in the Oooguruk oil field in the Beaufort Sea about 5 km (3.1 miles) off Alaska’s North Slope coast from an affiliate of Dallas-based privately-held Caelus Energy LLC. The terms of the transaction weren’t disclosed.
Eni already owns the remaining 30% working interest in the Oooguruk oil field, which has been in production since 2008. The company said the acquisition of Oooguruk’s remaining interest provides the addition of 7,000 barrels per day (bbl/d) of oil production and important operational synergies with the nearby Nikaitchuq Field.
The acquisition also further strengthens Eni’s presence in Alaska after its recent purchase of exploration leases covering about 350,000 acres located in the Eastern North Slope from Caelus in August 2018.
Pro forma, Eni will hold 228 leases in Alaska including 100% working interest and operatorship in the Nikaitchuq oil field, located roughly 13 km (8.1 miles) northeast of Oooguruk.
Eni plans to drill further production wells at Oooguruk and Nikaitchuq with the target to boost its total Alaska production beyond 30,000 barrels of oil equivalent per day (boe/d), a 10% increase from its current production of 20,000 boe/d, the company said.
RELATED:
Natural Gas Player Oil Search Ltd. Talks Alaskan Oil
Alaska North Slope: Next Frontier For Unconventionals
Nikaitchuq has been in production since 2011 and currently produces about 18,000 bbl/d of oil. Current gross production from the Oooguruk oil field is roughly 10,000 bbl/d of oil from 25 producing wells and 15 gas/water injector wells.
Production facilities for the Oooguruk oil field are located on an artificial gravel island, located in just 1.5 m (4.9 ft) of water depth with dry production trees, which provide for safe and environmentally responsible production operations, comparable to those of an onshore field, according to the company release.
Eni’s recent acquisition agreement with the Caelus affiliate, Caelus Natural Resources Alaska LLC, is subject to the approval of the authorities and to certain closing conditions.
Recommended Reading
Could Concentrated Solar Power Be an Energy Storage Gamechanger?
2024-03-27 - Vast Energy CEO Craig Wood shares insight on concentrated solar power and its role in energy storage and green fuels.
SLB’s ‘Transition Technologies’ Bring In $1B+, Baker Hughes Sees 45% New Energy Orders Jump
2024-01-24 - The oil and gas sector’s deep understanding of complex subsurface rock is helping to advance carbon capture and storage and other technologies.
One Man's Trash? Treasure of RNG Prospects Available for Waste Facilities
2024-02-21 - About 4.4% of current U.S. fossil gas demand could be displaced by RNG from waste, a new Deloitte report shows.
RIC Energy Sells 20 MW of Solar Plants to Luminace
2024-03-04 - RIC Energy says the facilities are expected to provide 100% clean energy to more than 5,000 homes participating in the utilities’ community solar programs.
Energy Transition in Motion (Week of Jan. 5, 2024)
2024-01-05 - Here is a look at some of this week’s renewable energy news, including a step forward for BP’s efforts to transform an old oil refinery into a biofuel facility.