POINT MCINTYRE FIELD GOES ON LINE
Alaska's latest major oil field development is on line.
Point McIntyre oil field on Alaska's North Slope began production Oct. 14.
Field owners ARCO Alaska Inc., Exxon Co. U.S.A., and BP Exploration (Alaska) Inc. reached agreement with the state of Alaska to expand the Prudhoe Bay unit to include state leases overlying the Point McIntyre reservoir.
ARCO said the field's production facilities had been ready to go into operation since early June, but start-up was delayed pending that agreement.
Production was to reach 80,000 b/d within a few days of Start-up and 100,000 b/d next year. The field will be produced through Lisburne field's production facilities. Point McIntyre reserves are estimated at as much as 340 million bbl.
Exxon, which holds about a 38% interest in the field, said it has not been able to come to an agreement with the state over whether it is entitled to deduct costs to treat the state's royalty oil. The company said the issues will be settled through the courts.
Exxon said since discovery in 1988, Point McIntyre working interest owners have spent about $300 million to explore and develop the field. Full development is to cost more than $700 million.
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