Production Begins from Alpine Field on Alaska's North Slope

abarrelfullabarrelfull wrote on 06 Feb 2014 07:41
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Nov. 16, 2000

Phillips Alaska, Inc., a wholly owned subsidiary of Phillips Petroleum Company [NYSE:P], and Anadarko Petroleum Corp. [NYSE:APC] announced today that the Alpine oil field on Alaska’s North Slope has started production. The field is expected to reach peak gross production of 80,000 barrels per day by yearend. Gross recoverable reserves are estimated at 429 million barrels.

"Alpine is a key addition to Phillips' Alaska operations," said Jim Mulva, Phillips’ chairman and chief executive officer (CEO). "We expect Phillips' production levels in Alaska to remain between 375,000 - 400,000 barrels-of-oil-equivalent per day for the next several years. In addition, advanced technology and a drive to be environmentally sensitive have made Alpine the standard by which all future Arctic developments will be measured. I want to congratulate the men and women of Phillips Alaska, Anadarko and the many Alaskans who made this development happen."

"Anadarko is a big believer in the future of Alaska as a key energy provider for all of North America," said Robert J. Allison, Jr., Anadarko chairman and CEO. "The start-up of the Alpine Field is just the first in what I’m sure will be a succession of new, important Alaskan oil and gas fields. This has been a true team effort between Anadarko, Phillips and the State of Alaska."

"Development of the Alpine field is a model of doing it right in Alaska," said Alaska Governor Tony Knowles. "By incorporating innovative technology that minimizes environmental impacts, Alpine demonstrates how we can responsibly develop our vast Arctic resources. And through the involvement of Alaska contractors, suppliers and Native corporations, Alpine development has been an effective partnership with Alaska business. Congratulations to Phillips and Anadarko for bringing this field on line and leading the way for future development on the North Slope."

The Alpine discovery was declared commercial in 1996. Alpine is the largest onshore oil field discovered in the United States in more than a decade. It also is the western-most producing oil field on Alaska's North Slope. The field is located in the Colville River area, 34 miles west of the Kuparuk River field, eight miles from the Inupiat village of Nuiqsut and near the border of the National Petroleum Reserve-Alaska.

To date, 30 wells – 16 production and 14 injection – have been completed at the first Alpine drill site. The entire Alpine development calls for two drill sites and more than 112 horizontal wells. Development of the first site includes the use of miscible injectant generated from the existing gas in the field to implement an enhanced oil recovery project at the time of field start-up. Development of the field will total more than $1 billion.

The 40,000-acre field was developed on just 94 acres, or two-tenths of one percent of the field area. In addition, Alpine is a zero-discharge facility. The waste generated is reused, recycled or properly disposed. There is no permanent road to the field, and in the winter ice roads are constructed to allow transportation of equipment and drilling supplies to the site. These roads minimize environmental impacts, because in the spring the ice roads melt, leaving no trace on the tundra. Small aircraft also provide service to the field.

Prior to the Alpine discovery, environmental experts and scientist had begun environmental studies in the area. These studies allowed the companies to locate drill sites and facilities in areas where they have had minimal impact on wildlife, waterfowl or the subsistence lifestyle practiced by the Nuiqsut residents.

"Alpine is the realization of the fact that our traditional subsistence interests can be balanced with the development of oil and gas interests," said Isaac Nukapigak, president of Kuukpik Village Corporation. "The employment and training programs started during the Alpine development are positive steps Kuukpik and industry can build upon into the future."

"We’ve spent more than eight years studying the environment in the Colville River delta area and working with the residents of Nuiqsut," said Kevin Meyers, president of Phillips Alaska. "Phillips and the Alpine team place a high value on respect for the land and the people who live there."

Phillips Alaska is operator of and holds a 78 percent interest in the Alpine field, while Anadarko holds a 22 percent interest.


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