ConocoPhillips, BP plan heavy oil ANS expansion project

Aug. 10, 2004
ConocoPhillips Alaska and BP Exploration (Alaska) Inc. revealed plans Tuesday for a $500 million project to increase oil production from West Sak oil field to 45,000 b/d by 2007 from its current average production of 10,000 b/d.

By OGJ editors

HOUSTON, Aug. 10 -- ConocoPhillips Alaska and BP Exploration (Alaska) Inc. revealed plans Tuesday for a $500 million project to increase oil production from West Sak oil field—a large, shallow, heavy oil accumulation that overlies much of ConocoPhillips-operated Kuparuk field on Alaska's North Slope—to 45,000 b/d by 2007 from its current average production of 10,000 b/d.

The development program, which the companies are calling "the largest-ever heavy oil development program in Alaska," will include two drill sites within the Kuparuk River Unit: existing Drill Site1E and Drill Site 1J, which will be the first stand-alone West Sak drill site.

Plans call for the drilling of 13 West Sak wells at Drill Site 1E and 31 wells at Drill Site 1J. The development program also includes expansion of facilities at Drill Site 1E, and the construction of new facilities, pipelines, and electric power lines for Drill Site 1J.

Drill Site 1E expansion is expected to add about 10,000 b/d of oil, with first production anticipated to start this summer. Development of Drill Site 1J will add about 30,000 b/d of oil, with first production expected in late 2005 and peak production in 2007.

First-year average production rates from a typical West Sak well have climbed from a few hundred b/d of oil in 1997 to more than 1,500 b/d currently. "The increase in production rates is a result of advanced drilling technologies such as multilateral wells, which have multiple producing well bores, and the use of enhanced oil recovery technologies that make it possible to extract more oil from the reservoir," the companies said.

ConocoPhillips operates West Sak field, which will be owned by ConocoPhillips 52%, BP 37%, ExxonMobil Corp. 5.8%, Unocal Corp. 5%, and ChevronTexaco Corp. 0.1%.