Companies to Increase Production from New 'TABASCO' North Slope Oil Field

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27 August 1998

ARCO Alaska, Inc., BP Exploration (Alaska) Inc., UNOCAL, Chevron USA Inc., and Mobil Exploration and Producing U.S. Inc., have applied for state permission to begin commercial production from the Tabasco oil field, a shallow, viscous oil accumulation that overlies the Kuparuk reservoir on Alaska's North Slope.

Test production from a single Tabasco well began 13 May. The well is producing more than 2,500 barrels per day of 16.5 degree API gravity oil. Following approval of commercial production by the state, plans call for drilling up to 20 production and injection wells over the next few years with production increasing to more than 10,000 barrels of oil per day in 1999.

The new North Slope oil field has estimated reserves of as much as 30 million barrels of oil. .

"This field could be larger," said ARCO Alaska President Kevin Meyers. "A 3-D seismic survey indicates the Tabasco formation extends beyond the area we are now developing. We are planning a delineation drilling program to determine the full extent of the reservoir."

ARCO Alaska, Inc., (55.2%), BP Exploration (39.2%), and UNOCAL (4.9%) are the major owners of the Tabasco field. The field will be developed and operated by ARCO Alaska, Inc., which also operates the Kuparuk field.

Tabasco was discovered in 1986 during development of the underlying Kuparuk field. Tabasco is the second viscous oil development in the Kuparuk Area, following startup of the West Sak oil field in December 1997. It is the third Kuparuk satellite oil field to begin production in the last year. Like the Tarn field which began production in late July, Tabasco will be produced using existing Kuparuk infrastructure.

"Development of these viscous oil reservoirs is possible because of new, low-cost drilling and completion technologies and because we're able to make extensive use of existing Kuparuk drill sites and processing facilities," Meyers said.
BP Exploration President Richard Campbell said, "Tabasco is one of a number of satellite accumulations in and around existing fields which will help to grow and sustain North Slope production into the foreseeable future.


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