Anchorage (Platts)--1Jun2007
ConocoPhillips plans to expand production of heavy oil from the Alaska North Slope and to test new production technologies on large, untapped deposits of even heavier crude, company officials said Friday. The company is nearing completion of drilling on its $440 million Drillsite 1-J West Sak heavy oil production pad and is planning a new phase of West Sak development which could require an investment up to $1 billion, Blaine Campbell, ConocoPhillips' supervisor for the its heavy oil program, told Platts in an interview. If given final approval by the lease owners, including the majority holder ConocoPhillips, the proposed North East West Sak program will be in an area north of the existing producing pads where oil quality is similar to that of existing developments, Campbell said. It would involve two new drill sites and approximately 53 wells, he said. "There will be a significant amount of surface facilities needed, in pipelines, power lines, gravel road, pads, and on-pad infrastructure, so we are looking at a significant capital expenditure if this project goes ahead," Campbell said. At peak production the project is expected to produce about 20,000 b/d, he said. About 40,000 b/d of heavy oil is currently being produced on the North Slope, which all told has oil production of about 750,000 b/d. Campbell said ConocoPhillips is currently producing 23,500 b/d from West Sak and BP is producing the remainder of the current 40,000 b/d of heavy North Slope oil from satellites in the Prudhoe Bay and Milne Point oil fields, BP spokesman Daren Beaudo said. ConocoPhillips and BP also have plans to test new production technologies to tap very heavy oil in the Ugnu formation, a large deposit that overlies the existing fields on the slope. BP plans an Ugnu test well in its Milne Point field this year, Beaudo said. --Tim Bradner, newsdesk@platts.com This is an excerpt. For more news, request a free trial to Platts Oilgram News at http://www.platts.com/Request%20More%20Information/index.xml?src=story or subscribe now at http://www.platts.com/infostore/product_info.php?cPath=1_29&products_id=29
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