The Nanushuk export pipeline will start delivering sales-quality oil to the Kuparuk CPF2, after the NPF becomes operational in 2025. Separated water will be sent back via a 12in-diameter water injection pipeline from the Kuparuk CPF2 to the NPF, from where it will transported back to ND-B via a 12in-diameter infield water injection pipeline. The hydrocarbon fluids from the ND-B drilling pad will be transported via a 24in-diameter multi-phase pipeline to the NPF site and further via the 18in-diameter Nanushuk export pipeline to the Kuparuk CPF2. Oil Search plans to initiate the Pikka Unit’s early production at a rate of 30,000bopd from the ND-B drill site in late 2022. Pikka development early production phase details The oil processed at the NPF will be transported through the Nanushuk export pipeline to the TIP near Kuparuk CPF2 for tie-in with the Kuparuk Sales Pipeline that connects to Trans Alaska Pipeline System (TAPS). The water separated from the oil will be treated and transported back to the drill sites for re-injection, while the separated gas will be used for power generation at the NPF with the surplus gas piped back to the drill sites for gas lift and reinjection. The Nanushuk central processing facility (NPF) to be developed on a 17-acre gravel pad will be capable of processing roughly 120,000 barrels of oil a day. The onshore oil field is planned to be developed with three drill sites, namely ND-A, ND-B, and ND-C, up to 151 production and injection wells, a central processing facility (NPF), an operations centre, 48km of infield pipelines, the Nanushuk export pipeline, a tie-in pad (TIP) near the ConocoPhillips-operated Kuparuk Central Processing Facility 2 (CPF2), and approximately 40km of infield and access roads. The Nanushuk project will target oil resources in the Alpine C and Nanushuk reservoirs in Alaska’s North Slope. Nanushuk project development plan details The North Slope Borough approved the development re-zoning application for the project towards the end of 2019. Oil Search sought an amendment to the Plan of Operations to implement early production as well as modify the infrastructure footprint of the project, in September 2019. Oil Search received the permit and record of decision (ROD) for the Pikka development project from the USACE in May 2019 and exercised an option to buy out the remaining ownership interests held by Armstrong Energy and its subsidiary GMT Exploration for £356m ($450m) in June 2019.Ī Plan of Operations was submitted to the Division of Oil and Gas, Department of Natural Resources (DNR), the Government of Alaska, in July 2019, for authorising the project development. Oil Search initiated a fresh appraisal drilling programme with the start of ice road construction in the same month. The USACE published the final EIS for the project in November 2018. Oil Search became the operator of the Nanushuk development, after completing the purchase of 25.5% interest in the Pikka Unit, 37.5% interest in the Horseshoe Block, and 37.5% interest in the Hue Shale on Alaska’s North Slope, from Armstrong Energy for £286m ($400m) in February 2018. The USACE prepared the draft environmental impact study (EIS) for the project by September 2017. ![]() The other major discovery in the Nanushuk play is the Willow discovery announced by ConocoPhillips in January 2017.Īrmstrong Energy and Repsol submitted permit application for the Nanushuk project to the US Army Corps of Engineers (USACE) in June 2015. The Horseshoe-1 and Horseshoe-1A wells drilled between 20 confirmed Nanushuk as a promising oil play containing more than 1.2 billion barrels of recoverable oil. The Qugruk 8 and Qugruk 301 wells, drilled in 2015, confirmed the reservoir productivity of Nanushuk.Īrmstrong and Repsol reported the Horseshoe discovery 32km south of Pikka in March 2017, after drilling 13 exploration and appraisal wells within the Pikka area on the North Slope. The Pikka field was discovered by the Armstrong Energy and Repsol with the drilling of Qugruk 3 discovery well in 2013. ![]() The Pikka development is expected to produce 30,000 barrels of oil per day (bopd) in its early production phase starting from 2022 and achieve its design output of 120,000bopd upon full development in 2025. Front-end engineering and design (FEED) activities were started in early 2020, while a final investment decision (FID) on the project is expected in the second half of 2020.
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