Project Profile
Value: US$1,500 million
Location: North Slope of Alaska in the Beaufort Sea, Alaska
Start-up Year: February 2011
Oil reserves: 220 million barrels of oil
Peak production: 28,000bpd
Water Depth: 3 metres
The Nikaitchuq oil field lies at a depth of 3 metres off the shore of the North Slope of Alaska in the Beaufort Sea. The field is owned and operated by Eni (100%). The company is spending US$1.5billion on the field\'s development. First production from the field was expected in 2009 / early 2010. Eni, however, delayed the project in March 2009 due to a decline in crude prices, hurricane-related fabrication delays and poor economic conditions. Development activities were resumed at the end of 2009. First production occurred in February 2011 and a peak production of 28,000bpd is expected. The Nikaitchuq field is estimated to contain 220 million barrels of oil in two reservoirs. Light oil is found in the deep, low quality Sag River reservoir. A bigger accumulation of viscous oil is found in the shallow Schrader Bluff reservoir.
Field development:
Kerr-McGee, the earlier operator of the field, drilled eight wells that tested for oil between 2004 and 2007. These early exploration activities suggested the need for horizontal producing and injection wells to maintain pressure and economically recover the hydrocarbons. Eni acquired 100% interest in the field in 2007 and commenced the development of the field in January 2008.
Eni drilled a production and a disposal well between 2008 and 2009. Eni\'s development plans for the Nikaitchuq field include drilling of 52 extended-reach wells (22 onshore and 30 offshore) in two phases. The drilling will be carried out from two drilling pads. One drilling site is the onshore pad at Oliktok Point. The other is an 11-acre offshore artificial floating gravel island at Spy Island, located about 4.5km from the coast in Harrison Bay. Construction of both drilling pads has been completed. In the first phase, 22 wells will be drilled from Oliktok Point Pad. These wells include ten production wells and eight injectors, which will be located side by side. They will be drilled horizontally at angles ranging between 50° and 80°, with laterals ranging between 4,000ft and 10,000ft. Three water wells and one disposal well will also be drilled. Eni has completed the drilling of 12 onshore wells from Oliktok Point Pad. Drilling on the remaining wells is being carried out by Nabors rig 245-E. Thirty offshore wells will be drilled in the second phase from the Spy Island drilling pad. These include 16 production wells, 13 injection wells and one disposal well. Eni plans to use Doyon rig 15 to carry out drilling activities at the Spy Island drilling pad. Drilling commenced in late 2011 and will be complete by 2014.
Pipeline:
The oil produced will be transported to the new 40,000bpd processing facility located at Oliktok Point. The processed oil is then sent to the Kuparuk pipeline, which is connected to the Trans-Alaska Pipeline System.
The bundle includes an 18inx14in production flowline, a 12in water injection flowline and a 6in spare flowline. A fibre optic cable and power cable are also part of the bundle.
Contracts for the Nikaitchuq oilfield:
INTECSEA was awarded the contract for providing pre-FEED, FEED, design and construction support for the subsea pipeline bundle. Nanuq built the offshore gravel island at Spy Island. The scope of work for Nanuq included three and half miles of trenching for the construction of the island and maintenance of ice roads. Construction of the pipelines was carried out by HC Price. ASRC Energy Services is providing support services for field development. ATCO was contracted for building the on-site camp for personnel at Oliktok Point.
Operators:
Eni: Operator with 100% interest
Contractors:
INTECSEA: Pre-FEED, FEED, design and construction support for the subsea pipeline bundle.
Nanuq: Built the offshore gravel island at Spy Island.
HC Price: Construction of the pipelines
ASRC Energy Services: Support services for field development.
ATCO: Building of the on-site camp for personnel.