Amplify Energy Corp. is working to restart production from Beta crude oil field offshore California following approvals from federal regulatory agencies.
Production and pipeline operations at the field have been shut since a ship anchor struck and ruptured the company’s 16-in. OD subsea pipeline that extends 17.5 miles from a platform to an onshore pump station, metering, and tankage at the Port of Long Beach late in 2021, resulting in an oil spill (OGJ Online, Oct. 4, 2021).
Work to resume full operations includes filling the San Pedro Bay Pipeline with production, a process the company began over the weekend, and is expected to take about 2-3 weeks to complete, the company said in a release Apr. 10.
Following the line fill process, the pipeline will be operated in accordance with restart procedures reviewed and approved by the Pipeline and Hazardous Materials Safety Administration, the company said.
Beta contained 12 million bbl of estimated proved net oil reserves as of yearend 2021, according to Amplify. The company had been producing roughly 24,000 boe/d from the field before the pipeline rupture.
In September 2022, Amplify entered a no-contest plea with the State of California to resolve all criminal matters stemming from the incident, during which the pipeline’s position shifted 105 ft. The segment in question was located 5 miles offshore in 160 ft of water (OGJ Online, Sept. 9, 2022).
Last month, the company reached a settlement of claims against shipping firms associated with M/V Beijing and M/V Danit in connection with the anchor strikes by the containerships that damaged the pipeline. The settlement results in a net payment to Amplify of about $85 million.