BP Exploration Alaska Liberty offshore oil project on hold

By OGJ editors

BP Exploration Alaska Inc. indefinitely suspended its Liberty oil field project in the Beaufort Sea offshore Alaska, citing project engineering and economics although the company said it might redesign the project later.

The BP unit had planned to drill wells nearly 2 miles deep and with offsets as long as 8 miles (OGJ, Oct. 2, 2006, p. 37).

Using a land-based rig to drill ultraextended-reach wells into Liberty field, the BP unit initially expected oil production to begin in 2011, ramping up to 40,000 b/d, with an estimated ultimate recovery of 100 million bbl oil.

“After a full review of project engineering and economics, BP has decided not to pursue the proposed Liberty project, in its current form,” company spokeswoman Dawn Patience told OGJ. “BP is in the process of working with regulators to discuss the potential forward plans for the project.”

Patience said rig modifications necessary to drill the ultraextended-reach wells to BP standards would increase project costs significantly above the original $1.5 billion project estimate.

BP’s decision process included a detailed 18-month review of the rig systems, an analysis of the project’s risk and economics, and an assessment of the evolving regulatory framework, Patience said.

Related Articles

Baker Hughes: US drilling rig count drops to 1,803

03/21/2014 After consecutive weeks of significant gains, the US drilling rig count lost 6 units to 1,803 rigs working during the week ended Mar. 21, Baker Hug...

Cenovus gets AER approval for Grand Rapids oil sands project

03/21/2014 Cenovus Energy Inc. reported that it has received approval from the Alberta Energy Regulator (AER) for its wholly owned Grand Rapids thermal oil sa...

Shell lets contracts for Majnoon development

03/18/2014 Shell Iraq Petroleum Development BV has let engineering and procurement services contracts to Foster Wheeler Kentz Energy Services DMCC, Dubai, for...

Ivanhoe halts Tamarack oil sands project citing lack of regulatory ‘clarity’

03/18/2014 Ivanhoe Energy Inc. has suspended activity on its Tamarack oil sands project pending approval for its thermal oil sands application from the govern...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected