Oil production begins from CD5 drill site in NPR-A

ConocoPhillips Alaska Inc. has started oil production from its CD5 drill site in Alpine field, marking the first commercial oil development on Alaska Native lands within the boundaries of the National Petroleum Reserve-Alaska (NPR-A) (OGJ Online, Aug. 20, 2015).

CD5 is the second ConocoPhillips North Slope drill site to come on stream this month. Production from Kuparuk Drill Site 2S started on Oct. 12 (OGJ Online, Oct. 13, 2015).

Four wells are complete at CD5, with development plans calling for 11 more by early 2017. Peak gross production is anticipated at 16,000 bo/d. CD5 represents a total project investment of more than $1 billion (gross).

With the completion of CD5, ConocoPhillips is pursuing additional developments in NPR-A. The company has received permits for its Greater Mooses Tooth 1 (GMT1) development, which lies 8 miles west of CD5 (OGJ Online, Oct. 23, 2015). A final investment decision is expected later this year. GMT1 is estimated to cost $900 million (gross) and could produce up to 30,000 bo/d gross at peak production, ConocoPhillips says.

The company also has filed permits for development of a second drill site in the Greater Mooses Tooth Unit (GMT2) and is considering additional NPRA exploration opportunities.

The ConocoPhillips-led CD5, GMT1, Kuparuk Drill Site 2S, and recently announced 1H NEWS (Northeast West Sak) development represent $3 billion (gross) in new North Slope projects. Peak gross combined production when all of these projects are on stream is estimated at 40,000-50,000 bo/d. ConocoPhillips says its continued focus on investment in Alaska is due in part to tax reform passed in 2013.

“This announcement is the culmination of more than 10 years of work and collaboration with key stakeholders, including the residents of the nearby village of Nuiqsut,” commented Joe Marushack, president of ConocoPhillips Alaska.

CD5 is situated within the boundaries of the NPR-A on land owned by Kuukpik Corp., the village corporation for Nuiqsut, with mineral rights owned largely by Arctic Slope Regional Corp. CD5 is part of the Colville River Unit, which is operated by ConocoPhillips Alaska with 78% interest. Anadarko Onshore E&P LLC holds 22% interest. Greater Mooses Tooth Unit also is owned 78% by ConocoPhillips and 22% by Anadarko Onshore E&P LLC.

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