VOLUME 2 | ISSUE 2 | SPRING 2025
If the find leads to development, Apache may become the operator. Armstrong is a skilled exploration company but has shown less interest in operating projects. Also on the eastern Slope, the award- ing of federal leases on the coastal plain of the Arctic National Wildlife Refuge by U.S. District Court Judge Sharon Gleason will lead, finally, to exploration in ANWR. The leases are held by a state corpora- tion, the Alaska Industrial Development and Export Authority (AIDEA), which bid on and won them in a 2020 federal lease sale. Former Interior Secretary Deb Haaland canceled the leases and AIDEA sued, argu- ing Haaland’s action was illegal. Gleason agreed. The state corporation does not in- tend to develop the leases itself but rather contract with private companies to do ex- ploration. Discussions are already under- way on a seismic exploration program, the first step in further determining the region- al oil potential. It's unknown how much oil ANWR might hold but it’s likely there will be some petroleum found given the proximity of state of Alaska lands just to the west of previous discoveries. Those include Exx- onMobil’s discovery of the large natural gas and liquid condensate field at Point Thom- son, just west of the ANWR border with state lands, and Sourdough, an oil discov- ery made by BP that almost straddles the boundary with ANWR. An independent company, Jade Energy, is now working to explore Sourdough fur- ther but there are at least 50 million barrels of confirmed resources, according to BP, its former owner. While most attention has focused on Willow and Pikka, Hilcorp Energy is con- tinuing an aggressive program at the Milne Point field, which it owns and operates, and at Prudhoe Bay, the largest North Slope field where Hilcorp is operator and part-owner with ConocoPhillips and ExxonMobil. Milne Point has been a continuing suc- cess story, said Luke Saugier, Hilcorp’s Se- nior Vice President for Alaska. The field reached 51,000 barrels per day in January after a steady increase from 18,000 barrels per day in 2014 when Hilcorp took over ownership and operation from BP. Raven Pad, one new project in Milne Point, saw work begin two years ago in construction and is now producing 6,000 to 7,000 barrels per day.
Hilcorp has invested $1.5 billion to date in Milne Point. The company told state legislators in a briefing it expects to reach 61,000 barrels per day in three to four years at its present rate of growth. Prudhoe Bay is also a Hilcorp success. The company became operator in 2019 and after a vigorous effort to repair and redevel- op wells arrested a gradual 4% decline in the field that had been happening for years. The field was producing about 350,000 bar- rels per day in 2015 but had declined to about 290,000 barrels per day in 2019. Hil-
corp has been able to stabilize production since then. Hilcorp’s projected growth is for a gain of 100,000 barrels per day in 2025 over 2024. That is more than the 80,000 expected in Pikka’s phase one, Saugier said. The com- pany will invest $750 million in its Alaska operations in 2025, he said. Overall, Hilcorp’s work has resulted in $5.6 billion in new state revenue since 2012 after $2.6 billion in total investment by the company, Saugier told legislators in the briefing.
SETTING THE STANDARD FOR FACILITY MANAGEMENT AND SECURITY SERVICES
Facility Management . Remote Camp Services . Culinary & Catering
Security Services
. Critical Infrastructure Protection . Oil & Gas Industry Expertise . Hospitals & Healthcare Facilities . Corporate Complexes . Fire Service Response for Remote Sites . Medic & Safety Specialists
. Housekeeping, Custodial, & Janitorial . Purchasing & Supply Management . Travel Coordination
(907) 522-1300 | DENALIUNIVERSAL.COM
25
www.AKRDC.org
Made with FlippingBook Online newsletter maker