Alaska

Alaska
Contents
About us
3 About BP
BP opened its first office in Alaska in 1959, and for more
than four decades has led the oil and gas industry that
drives Alaska’s economy. BP operates nine North Slope
oilfields in the Greater Prudhoe Bay area, and owns
significant interest in six producing fields that are operated
by others. BP also owns significant non-operating interest
in the Point Thomson development project, the Liberty
prospect, and the Trans Alaska Pipeline System (TAPS).
Our business strategy in Alaska revolves around the
safe, reliable and efficient development of the significant
undeveloped light oil, viscous and heavy oil, and natural
gas resources within the existing North Slope fields.
4 President’s message
5 BP in the Community
6 Alaska Hire & Education
7 BP Energy Center
8 Alaska LNG
9 Point Thomson
10TAPS
12 Alaska Clean Seas
2014 Statistics
Employees
13 Arctic Ecology Advanced
2,000 (80% Alaska residents)
14 Greater Prudhoe Bay
Capital investment
18 Greater Point McIntyre
$1.1 billion
Operating budget
22 Milne Point Unit
$1.7 billion
24 Greater Kuparuk Area
Net production rate
28 Drones help monitor Prudhoe Bay
30 Field statistic summary
This publication of “BP in Alaska” was published in May 2015.
All 2014 statistical data is based on the full calendar year, unless otherwise noted.
Production data as reported by Alaska Oil & Gas Conservation Commission.
For more information go to alaska.bp.com
2,000
employees
~127,000 barrels of oil equivalent per day
Gross production rate for BP fields (owned & operated)
~418,000 barrels of oil equivalent per day
Taxes and royalties
$2.25 billion total payments to government
Community investment
$5+ million
Prudhoe Bay well site
2
3
President’s
message
Alaska continues to be
an important part of BP’s
Janet Weiss
portfolio. This includes
Prudhoe Bay and the Alaska LNG opportunity; along with
our co-venturer opportunities with Hilcorp, Milne Point
and Liberty; and non-operated positions in the Greater
Kuparuk Area and Point Thomson. After nearly 38 years
of production in Alaska, the North Slope still has large
amounts of the discovered oil and gas remaining. BP
focuses its strategy and investment in Alaska on ensuring
safe and sustainable operations; on renewing its North
Slope infrastructure; on reducing decline by continuing to
invest in the known resources; and on commercializing
Alaska natural gas.
As we move forward, we continue to focus on what we
do best: giant fields and gas value chains. Along with our
co-owners at Prudhoe Bay, we are moving forward with
new activity. We seek to economically produce more oil
even with the fall of oil prices. Reducing decline is the
objective; this price environment helps us focus even
more acutely on efficiency. The goal, of course, to get
more oil down TAPS, which benefits everyone in Alaska.
The other great future opportunity for Alaska is gas. Together
with the State of Alaska, ExxonMobil, ConocoPhillips, the
Alaska Gasline Development Corporation, and TransCanada,
we are moving forward on the single largest investment in
Alaska’s history. With a price tag of between $45 billion and
$65 billion, the project will create tens of thousands of jobs
during construction, an estimated 1,000 jobs for ongoing
operations, and generate billions of dollars in new revenue
for Alaska. If progress continues, and all goes according to
plan, we will see first gas production by 2025.
BP in the community
In addition to its oil and
gas activities in Alaska,
BP is heavily invested in
communities across the
state through donations to
non-profit and education
groups, scholarship
programs, and volunteer
hours from its employees.
In 2014, BP Alaska donated over $5 million to hundreds of
organizations throughout Alaska. Our employees support
more than 800 community and education organizations
and 230 youth teams. The company supported these
efforts through matching grants and the BP Fabric of
America program.
Fabric of America is an employee-directed
giving program. In 2014, BP Alaska employees
donated nearly $255,000 to
380 organizations across the
state through the program;
and in the past eight years
donated more than
$2 million to nearly
1,000 organizations.
community investment
$5+
million
We are proud of our 2,000 employees in Alaska, 80 percent
of which are Alaskans. We continue to reduce and stabilize
cost, reduce production decline, improve safety and
compliance, and deliver more reliable operations. Team
Alaska is truly an incredible team.
This publication is designed to give you an update on our
business in Alaska; delivering a sustainable oil and gas
business, while investing in community organizations and
education. I hope you find it interesting and useful as we
work together to build a strong future for our state.
Sincerely,
Janet Weiss, BP Alaska President
4
5
BP Energy Center
Barbara Veeck is the 2014 Kenai BP Teacher of the Year. Veeck is a
special education resource teacher at West Homer Elementary School.
Supporting Quality
Education and an Alaska
Workforce
Training Alaskans and supporting a quality education
system in the state remain key priorities for BP. Of our
2,000 employees in Alaska, roughly 80 percent are
Alaskans and we encourage our contractors to hire and
train Alaskans as well.
In order to grow an Alaska workforce, BP has invested
millions of dollars toward quality education in the state;
nearly $30 million over the last decade alone to the three
major higher learning institutions including the University
of Alaska (UA), Alaska Pacific University, and Ilisagvik
College. BP, partnering with the UA, has been instrumental
in creating industry-specific programs such as the Asset
Integrity and Corrosion Lab, the Alaska Native Science and
Engineering Program, and Process Technology Programs.
A true gift to Anchorage and communities across Alaska,
the BP Energy Center provides meeting space free of
charge to more than 400
community and education
groups every year. The
center underscores BP’s
commitment to making
Alaska a great place to live,
work and raise a family.
The training, meeting, and
conference facility has seen
more than 150,000 visitors
During normal business
since opening in 2002.
hours, the facility is
available at no cost via a
reservation system to its
users. The Energy Center
remains a symbol of BP’s
ongoing commitment
to community and is
the centrepiece of BP’s
annual multi-million dollar
contribution to Alaska’s
not-for-profits.
Together, we can create a unique learning environment and
a brighter future for a more technically skilled workforce.
Through the BP Teachers of Excellence program, BP has
recognized more than 600 teachers throughout Alaska
over the past 20 years. Each year, hundreds of teachers
are nominated by students, parents, or colleagues and the
winners receive a $500 grant along with another $500 for
their school.
Additionally, since 1985, BP has awarded more than $3
million to nearly 800 graduating high school seniors from
across Alaska as part of the Principals’ and Commissioner’s
Scholarship program. BP also awards Process Technology
scholarships to students selected for two-year process
technology degree programs at the UA campuses on the
Kenai Peninsula, in Anchorage, Fairbanks, and Barrow.
6
7
Alaska LNG
BP continues to work jointly with ExxonMobil,
ConocoPhillips, TransCanada, the Alaska Gasline
Development Corporation and the State of Alaska to
advance the Alaska LNG project. A successful project
would be the largest single investment in Alaska’s history
and could provide significant economic benefits including
state revenues, job opportunities, and access to Alaskaproduced natural gas for homes and businesses.
The project concept includes a gas treatment plant located
on the North Slope, an 800-mile, 42-inch pipeline with at
least five off-take points for in-state gas delivery, and a
liquefaction plant and terminal at the Nikiski area on the
Kenai Peninsula. From there the liquefied natural gas
would be loaded on specialized tankers for delivery to
markets in Asia.
A rig on the move at Point Thomson.
Courtesy: ExxonMobil - photo by Buzz Rohlfing
Point Thomson:
Gas for Alaska’s Future
BP is 32 percent owner in Point Thomson, a gas and
condensate field on Alaska’s North Slope operated by
ExxonMobil. Located about 60 miles east of Prudhoe Bay
along the shoreline of the Beaufort Sea, it is estimated to
hold about 25 percent of known North Slope natural gas.
The field is considered key to a successful Alaska LNG
project.
Illustration shows what the LNG plant at Nikiski would look like.
In April 2014, the Alaska State Legislature passed
legislation which approved State of Alaska participation
in the project as a 25 percent co-investor, and allowed
payment of gas production tax in the form of gas
volumes. Then in June of the same year the Alaska LNG
co-venturers, including the State of Alaska, executed
commercial agreements and launched the preliminary
front end engineering and design (pre-FEED) phase of the
project, which is expected to extend into 2016 with gross
spend more than $500 million.
A decision point for progressing to the FEED phase of the
project will be considered at the completion of the preFEED phase. First commercial gas is planned between
2023 and 2025.
8
The development of Point Thomson has progressed well
with a multi-billion dollar investment to drill wells, and
construct processing facilities, gravel pads, pipelines, and
supporting infrastructure including an airstrip, base camp,
and sea barge docks and piers. The project is designed
to initially produce 10,000 barrels a day of condensate
in the winter of 2015/2016. Condensate is a light oil that
will be recovered by taking the high pressure gas that is
produced and processing it through the planned initial
production system facilities. The remaining lean gas will
be re-injected back into the reservoir.
The long-range development plan for Point Thomson is to
drill additional wells and construct additional pipelines and
facilities to produce and market gas as part of an Alaska
LNG project.
Pt. Thomson
(ExxonMobil)
Badami
(Miller)
9
Trans Alaska Pipeline
System
The 800-mile-long Trans Alaska Pipeline System (TAPS)
is one of the largest pipeline systems in the world. It
stretches from Alaska’s North Slope to Valdez, crossing
three mountain ranges, 34 major rivers and streams, and
nearly 500 smaller water crossings.
On board the tanker Alaskan Explorer in Port Valdez.
TAPS ownership:
Valdez Marine Terminal
Operator:
Storage capacity - 7.14 million barrels
Alyeska Pipeline Service Company
Tankers loaded since startup - more than 21,400
Construction cost - $1.4 billion in 1977
Owners:
BP Pipelines (Alaska) Inc.
48.44%
ConocoPhillips Transportation Alaska, Inc.
29.20%
ExxonMobil Pipeline Company
20.99%
Unocal Pipeline Company
1.35%
TAPS FACTS
TAPS average daily throughput (2014)
513,441 average bbls/day
www.alyeska-pipe.com
TAPS total throughput (2014)
187,406,088 bbl
Other pipelines
TAPS cumulative throughput since startup
more than 17.1 billion bbl
In addition to TAPS, BP owns:
38% — Kuparuk Pipeline
Pipeline diameter - 48 inches
50% — Milne Point Pipeline
Construction cost - $8 billion in 1977
32% — Point Thomson Export Pipeline
10
11
Alaska Clean Seas:
A world leader in oil spill response
Alaska Clean Seas (ACS),
the North Slope-based oil
spill response cooperative
that serves BP Alaska and
other North Slope oil producers, reached a milestone on
December 25, 2014. On that day, the team reached two
million hours without a Lost Time Accident.
ACS is recognized as a world leader in Arctic land and
marine oil spill response. It maintains and operates nearly
$100 million of oil spill response equipment - one of the
largest collections of oil spill response equipment in the
Pacific Northwest.
ACS has nearly 100 full-time employees and employs
personnel from local villages and subcontractors to
respond to seasonal workloads and responses. ACS is
also responsible for training North Slope Spill Response
Teams that are immediately available to support response
activities. There are 170 fully-qualified and highly-trained
personnel ready to assist on any given day and more than
550 personnel Slope-wide participating in the program.
Additionally, ACS is a recipient of numerous awards,
including citations at the Governor’s Safety Conference
on three separate occasions. In 2000, it received the
prestigious William M. Benkert Marine Environmental
Protection Award from the U.S. Coast Guard, which
recognized ACS for outstanding achievement in all
aspects of marine environmental protection
For more than 30 years, as a not-for-profit cooperative,
ACS has provided world-class Arctic expertise with
an exemplary commitment to safety and delivering
unmatched support to the co-op members on Alaska’s
North Slope.
enviro
Environment
Knowledge of Arctic ecology
advanced by the oil industry
BP’s presence on the North Slope for nearly half a century
has not only helped advance technology in oil and gas
development and engineering, but also has vastly
increased understanding of Arctic ecosystems—from
weather and climate to the flora and fauna that inhabit this
northern region—both on land and in the sea.
Before companies like BP began searching for oil on
Alaska’s North Slope in the 1960s, most ecological studies
in the far north were funded by government programs in
the name of basic science. Little was known about what
is sometimes called “applied ecology,” or the study of
what happens to biological communities altered by human
activities.
The discovery of the giant Prudhoe Bay oil field in 1968
and its subsequent development sparked interest in Arctic
applied ecology. Scientists near and far wanted to know
how development would impact the region’s plants and
animals. At the same time, they wanted to know how
those impacts could be managed. Although government
programs have remained engaged in the Arctic, BP and
other oil and gas producers have actively pursued applied
ecological research on the North Slope.
BP has actively supported scientists working through
university, agency, consulting and nonprofit organizations.
Together, BP’s long-term studies, along with studies
by others, provide an annual snapshot of ecosystem
changes in the oilfields. Some of the changes, such as
nest initiation dates of shorebirds and soil temperatures,
show trends over time. Other changes reflect the everchanging nature of nature, with wide ranges from one
year to the next driven by everything from weather,
to interactions among species, to disease.
Each year, BP summarizes results
from a number of long-term ecological
studies in a report intended for a
general audience. The report includes
chapters on weather and climate,
plant communities, permafrost,
tundra nesting birds, brant and
snow geese, swans, ravens, fox
dens, polar bears, coastal fish,
underwater sounds, whale calls,
seals, and wildlife events.
12
13
Greater Prudhoe Bay
Enhanced oil recovery strategies
Prudhoe Bay Area Development Plan –
A roadmap for the future
With the 2014 sale of its interests in four North Slope oil
fields, BP Alaska’s operational focus for the foreseeable
future will be on maximizing value through oil and gas
recovery from Greater Prudhoe Bay.
In 2014, BP Alaska developed the Prudhoe Bay Area
Development Plan (ADP) designed to maximize valueadding oil recovery over the near term while preparing the
field for gas commercialization. The field has produced
more than 12 billion barrels since startup in 1977, and
remains among the largest oil fields ever discovered in
North America.
The ADP is unique in that it has alignment among BP
Alaska’s internal functions, Working Interest Owners
(WIOs) and approval at the company’s highest level. BP is
committed to the giant field and getting as much recovery
as is economically feasible. At Prudhoe Bay, BP is drilling
more complicated wells, performing more well work, and
making significant progress on Alaska LNG.
The challenge for the entire industry is to respond to a low
oil price environment in a way that improves efficiency and
accelerates innovation, which leads to smart investments.
BP’s goal is to minimize oil production decline. With an
expanded drilling program focused on adding rigs and
other activity, the pace of well activity in 2015 will increase
over 2014 activity. Additionally, BP has increased rig and
non-rig wellwork activity by nearly 35 percent since 2012.
Integrity programs will focus on fire and gas systems,
safety systems, pipeline renewal and facility siting. As
a number one priority, safety will be strengthened and
ensured through increased contractor management/
engagement, as well as a re-invigorated control of work
program.
On the eastern side of Prudhoe Bay near Flow Station 2,
BP is piloting changes to water/gas injection patterns that
could unlock stranded pockets of oil that could contribute
about 30 million barrels of recoverable oil.
Other measures to enhance oil recovery include supplying
miscible gas to North Greater Prudhoe Bay fields as
well as gas capacity renewal. This will improve existing
compression and dehydration, leading to future gas sales.
Prudhoe Bay seismic
BP completed a major North Prudhoe Bay seismic survey
in 2014/2015. The $78 million, 3D seismic survey covered
190 square miles and gathered geophysical data from both
the onshore and offshore areas within Prudhoe Bay. The
survey will support land-based oilfield development and
drilling.
Prudhoe Bay satellites
Satellite fields are smaller accumulations of oil that can
often be developed using existing infrastructure. The
2014 average daily production from Prudhoe Bay satellites
is about 22,600 barrels of oil. BP’s net share of that
production is about 5,200 barrels of oil.
There are five satellite fields currently producing and the
liquids are processed through the field’s main facilities.
Aurora, Borealis, and Midnight Sun satellite fields are
produced from similar formations, at 6,500 to 8,000 feet
below sea level. Orion and Polaris fields both produce the
difficult viscous oil from the Schrader Bluff formation, at
depths of 4,000 to 5,000 feet below sea level.
By using advanced drilling technologies we are growing
this important resource. The Prudhoe Bay satellite fields
have produced about 184 million barrels of oil. BP’s net
cumulative production is approximately 42 million barrels
of oil.
Milne Point
Schrader Bluff
Northstar
Midnight Sun
Tabasco
Aurora
Palm
Polaris
Point McIntyre
Niakuk
Lisburne
Borealis
14
Meltwater
5
10
MILES
Endicott
Orion
Kuparuk
Tarn
0
Eider
Liberty
Badami
West Sak
Prudhoe Bay
15
Oil Fields
Owners
Prudhoe Bay
Midnight Sun
BP (Operator) ~26%
BP (Operator)
ConocoPhillips~36%
ConocoPhillips
ExxonMobil~36% ExxonMobil
Chevron ~1% Chevron
Aurora
~26%
BP (Operator)
~26%
~36%
ConocoPhillips ~36%
~36% ExxonMobil ~36%
~1%Chevron ~1%
Field Data
Participating Field Area
217,827 acres
3,113 acres
10,480 acres
24 billion bbls
40 tcf
60 million bbls
230 million bbls
Cumulative Oil Production
Gross Field
Gross Field
Gross Field
Production (12/31/14)
12.2 billion
20 million
38 million
Current Rates (12/31/14)
Gross Field
Gross Field
Gross Field
Oil (thousands barrels/day)
Gas (MMcf/day)
Water (thousands bbl/day)
263
7,780
951
1
7
15
6
17
17
626
29
153
19
2
0
3
0
16
0
11
2
Orion
Polaris
Borealis
Original Oil in Place
Original Gas in Place
(includes satellite fields)
(barrels of oil)
Number of Wells
Oil Producers
Gas Injection
Water Injection
WAG Injection*
Oil Fields
Owners
BP (Operator)
~26%
BP (Operator)
ConocoPhillips~36%
ConocoPhillips
ExxonMobil~36% ExxonMobil
Chevron ~1%Chevron
~26%
BP (Operator)
~26%
~36%
ConocoPhillips~36%
~36% ExxonMobil~36%
~1%Chevron ~1%
Field Data
Participating Field Area
Original Oil in Place
19,842 acres
3.2 billion bbls
11,684 acres
450 million bbls
16,840 acres
350 million bbls
Gross Field
Gross Field
Gross Field
31
18
76
Current Rates (12/31/14)
Gross Field
Gross Field
Gross Field
Oil (thousands barrels/day)
Gas (MMcf/day)
Water (thousands bbl/day)
6
4
4
5
4
6
10
29
22
8
0
11
5
8
0
13
3
27
0
15
5
Cumulative Oil Production
Production (12/31/14)
(millions of barrels of oil)
Number of Wells
Oil Producers
Gas Injection
Water Injection
WAG Injection*
16
* Water Alternating Gas Injector
17
Greater Point McIntyre
Niakuk
The Greater Point McIntyre Area encompasses the Point
McIntyre field and the nearby satellite fields of West
Beach, North Prudhoe Bay, and Niakuk. The Lisburne
Production Center processes fluids from Point McIntyre
area fields and the Lisburne field. Production from the
Greater Point McIntyre area is 24,300 barrels of oil per day.
BP’s net production is approximately 5,600 barrels of oil
per day.
Point McIntyre
Located seven miles north of Prudhoe Bay, the Point
McIntyre field was discovered in 1988 and production
started in 1993. Point McIntyre contained an estimated 880
million barrels of oil in place. The field’s production peaked
in 1997 at 163,000 barrels per day. In 2014, production
averaged about 18,700 barrels of oil per day. BP produces
the field from two gravel drill site pads. Production rates
are maintained through drilling of new wells, enhanced oil
recovery methods and facilities upgrade.
The Niakuk field is located offshore, but produced
through onshore facilities. The field contained about
400 million barrels of oil in place. Production in 2014
averaged about 1,200 barrels of oil per day from the lower
Cretaceous Kuparuk River formation, a structurally and
stratigraphically complex formation.
Lisburne
The Lisburne field is a complex, fractured carbonate reservoir that lies underneath and adjacent to the main Ivishak
reservoir at Prudhoe Bay. The field was discovered in 1968
along with the Prudhoe Bay field and came on-stream
in late 1986. The field contained an estimated 2.4 billion
barrels of oil in place. Production averaged about 4,300
barrels of oil per day in 2014. Cumulative production
from the Lisburne field is more than 182 million barrels
of oil. BP’s cumulative net production from the field is
approximately 34 million barrels of oil. Horizontal drilling
technology using coiled drilling techniques, along with
geoscience techniques to identify fracture and fault
locations, have increased production rates in recent years.
Lisburne field
182
Lisburne
cumulative production
million bbl
0
5
10
Milne Point
MILES
Northstar
Point McIntyre
Tabasco
Alpine
Schrader Bluff
Palm
18
Eider
Endicott
Midnight Sun
Kuparuk
Tarn
Niakuk
Aurora
Polaris
Borealis
West Sak
Prudhoe Bay
Lisburne
19
Flow Station 1
Oil Fields
Owners
Point McIntyre
BP (Operator)
~26%
ConocoPhillips~36%
ExxonMobil~36%
Chevron~1%
Niakuk
BP (Operator)
~26%
ConocoPhillips~36%
ExxonMobil~36%
Chevron~1%
Lisburne
BP (Operator) ~26%
ConocoPhillips~36%
ExxonMobil~36%
Chevron~1%
Field Data
10,828 acres
880 million bbls
832 bcf
7,284 acres
400 million bbls
349 bcf
79,999 acres
2.5 billion bbls
2,300 bcf
Gross Field
Gross Field
Gross Field
467
96
182
Current Rates (12/31/14)
Gross Field
Gross Field
Gross Field
Oil (thousands bbl/day)
Gas (MMcf/day)
Water (thousands bbl/day)
19
244
93
1
3
26
4
80
6
32
0
12­
3
9
0
5
0
16
3
7
0
Participating Field Area
Original Oil in Place
Original Gas in Place
Cumulative Oil Production
Production (12/31/14)
(millions of barrels of oil)
Number of Wells
Oil Producers
Gas Injection
Water Injection
WAG Injection*
* Water Alternating Gas Injector
20
21
Milne Point Unit
Located about 25 miles west of Prudhoe Bay, Milne
Point has become an innovator in the application of new
reservoir technology to enhance oil recovery. Today the
Milne Point Unit produces about 19,000 barrels of oil per
day. Cumulative oil production from Milne Point is 322
million barrels of oil. BP’s cumulative net production is
about 239 million barrels of oil.
Milne Point was discovered in 1969 by Conoco and began
production in 1985. Today, the field is operated by Hilcorp
and jointly owned by Hilcorp and BP. Milne produces oil
from three main reservoirs. The Kuparuk and the Sag River
reservoirs are lighter oil horizons and the Schrader Bluff
produces viscous oil, with the consistency of maple syrup.
The viscous oil is colder and thicker than other North Slope
oil. All production fluids are processed through the Milne
Point Unit production facilities.
Oil Fields
Milne Point - Kuparuk
Schrader Bluff
Owners
Hilcorp (Operator) 50%
BP50%
Field Data
Participating Field Area
Original Oil in Place (gross)
Original Gas in Place
66,651 acres
8.9 billion bbls
613 bcf
Cumulative Oil Production
Gross Field
Production (12/31/14)
322
(millions of barrels of oil)
Current Rates (12/31/14)
Gross Field
Oil (thousands bbl/day)
Gas (MMcf/day)
Water (thousands bbl/day)
19
11
118
Number of Wells
Schrader Bluff
Milne Point
Tabasco
5
Niakuk
Eider
Sag Delta North
10
Kuparuk
Tarn
Endicott
Midnight
Sun
West Sak
MILES
22
114
1
81
0
* Water Alternating Gas Injector
Aurora
Polaris
Palm
0
Oil Producers
Gas Injection
Water Injection
WAG Injection*
Borealis
Lisburne
Prudhoe Bay
Liberty
23
Greater Kuparuk Area
Kuparuk satellite fields
Discovered in 1969, Kuparuk began production in
December 1981 and achieved a peak rate of 324,000 barrels per day in 1992. The producing reservoir is composed
of Cretaceous-age Kuparuk sands at depths of 5,500 to
6,500 feet. The Greater Kuparuk Area produced about
110,000 barrels of oil per day in 2014. BP’s net production
is 43,000 barrels of oil per day. Cumulative production
from the Greater Kuparuk Area is 2.3 billion barrels of
oil. BP’s cumulative net production is approximately 800
million barrels of oil.
BP holds approximately 39 percent ownership in the
Greater Kuparuk Area, which includes the satellite fields
of Tarn, Tabasco, Meltwater and West Sak. ConocoPhillips
is the field operator. The production from these fields
is processed through the Kuparuk production facilities.
Processed oil from Kuparuk is piped 28 miles to Pump
Station 1, the beginning of the Trans Alaska Pipeline
System.
The Kuparuk satellites include the fields of Tarn, Tabasco,
Meltwater, and the viscous oil West Sak field. In 2014,
the combined average daily production from the Kuparuk
satellite fields averaged 28,000 barrels of oil per day.
The Tarn satellite field located south of the Kuparuk field
produced about 7,000 barrels of oil per day in 2014. Like the
Tarn field, Tabasco began production in 1998. The Tabasco
field is a small development that produces relatively
viscous oil, and is situated to the west of the Kuparuk field.
Located 10 miles south of Tarn, Meltwater was discovered
in 2000 and produces from a single drill site.
West Sak
Discovered in 1971, West Sak is a shallow, viscous oil
reserve situated above the Kuparuk reservoir. West Sak’s
core area contains 1.5 billion barrels of oil but the oil is cold,
thick and difficult to produce. Long-term production from
West Sak began in 2004. In 2014, West Sak oil production
averaged 16,000 barrels of oil per day. The cumulative
production from West Sak is about 75 million barrels of oil.
Milne Point
Schrader Bluff
Tabasco
Northstar
Palm
Alpine
Aurora
Polaris
Kuparuk
Borealis
Niakuk
Midnight
Sun
Lisburne
Eider
Sag Delta
North
Endicott
West Sak
Tarn
Meltwater
0
5
10
Prudhoe Bay
MILES
24
25
Oil Fields
Kuparuk
West Sak
OwnersConocoPhillips (OP) 55.2%
ConocoPhillips (OP)
BP
39.2%BP
Chevron
5% Chevron
ExxonMobil 0.6% ExxonMobil
Tabasco
52.2%ConocoPhillips (OP) 55.4%
37% BP
39.3%
5%Chevron
5%
5.8%ExxonMobil 0.4%
Field Data
Participating Field Area
Original Oil in Place
Original Gas in Place
182,000 acres
5.9 billion bbls
2.8 tcf
17,955 acres
7.7 billion bbls
3,000 acres
160 million bbls
Gross Field
Gross Field
Gross Field
2.1 billion
75 million
18 million
Current Rates (12/31/14)
Gross Field
Gross Field
Gross Field
Oil (thousands bbl/day)
Gas (MMcf/day)
Water (thousands bbl/day)
83
191
522
16
11
8
2
0
18
417
8
258
25
48
3
41
0
5
0
2
0
Cumulative Oil Production
Production (12/31/14)
(barrels of oil)
Number of Wells
Oil Producers
Gas Injection
Water Injection
WAG Injection*
Oil Fields
Tarn
Meltwater
OwnersConocoPhillips (OP) 55.4%ConocoPhillips (OP)
BP
39.3%BP
Chevron
5%Chevron
ExxonMobil 0.4%ExxonMobil
55.4%
39.3%
5%
0.2%
Field Data
Participating Field Area
Original Oil in Place
10,350 acres
230 million bbls
6,263 acres
100 million bbls
Gross Field
Gross Field
107
17
Current Rates (12/31/14)
Gross Field
Gross Field
Oil (thousands bbl/day)
Gas (MMcf/day)
Water (thousands bbl/day)
7
10
16
3
10
0
30
6
10
0
9
6
0
0
Cumulative Oil Production
Production (12/31/14)
(millions of barrels of oil)
Number of Wells
Oil Producers
Gas Injection
Water Injection
WAG Injection*
* Water Alternating Gas Injector
26
27
Drones help monitor
Prudhoe Bay operations
In 2014, BP received
the first United States
commercial authorization
from the Federal Aviation
Administration to fly an
unmanned aerial vehicle
(UAV) over land at its
Prudhoe Bay operations.
Today, the Unmanned
Aerial Systems (UAS) are carrying out safety surveys of
Prudhoe Bay operations and providing significant data. The
UAS have the capacity to monitor oil and gas pipelines,
infrastructure, and create 3D mapping of the drilling pads
and roads. Testing is also underway to apply the technology
in spill response and environmental monitoring.
The UAS technology has the potential to improve the
safety, efficiency and reliability of BP’s Alaska North Slope
infrastructure and maintenance programs. The technology
has provided a new and efficient way of inspecting
infrastructure such as flare stacks, tanks, bridges and
power lines. The UAV is fitted with high-resolution still
and video cameras, as well as light detection and ranging
(LIDAR) equipment that can collect 3D images for trained
technicians, who carry out careful and detailed analysis of
the data.
This technology
allows BP to optimize
the planning and
implementation of
maintenance programs
for the North Slope
infrastructure. With more
than 200 miles of gravel
roads used to transport
oilfield equipment and rigs
to location, crews maintain
a 24/7 vigilance. Targeting
maintenance activities on
specific road areas will save
time and address safety and
reliability.
3D
imaging
28
Liberty
Plans to develop the Liberty
prospect continue to advance.
Hilcorp was brought in as operator
as part of BP’s sale of four northern
assets in 2014, and a key milestone
was passed as they submitted a
plan of development to the Bureau
of Ocean Energy Management.
BP retains 50 percent equity in
the project. The Liberty leases are
located in federal waters about six
miles offshore, east of the Prudhoe
Bay oilfield.
In addition to 50 percent equity
of Liberty, BP sold 50 percent of
Milne Point and 100 percent of
both Northstar and Endicott to
Hilcorp in 2014.
29
Summary
Weather
Winter temperatures across the North Slope frequently
dip to minus 30 degrees Fahrenheit with extreme winds,
resulting in severe chill factors. The lowest recorded
temperature was minus 62 degrees Fahrenheit. The
highest recorded temperature was 83 degrees Fahrenheit.
Even in the warmest month, July, the average daily
temperature is only 45 degrees Fahrenheit.
BP North Slope Oil Fields
Original Oil in Place
Original Gas in Place
~ 65 billion bbls
62 tcf
Cumulative Production
BP Net
Gross Field
Oil (12/31/14)
(billions of barrels of oil)
Current Rates (12/31/14)
Producing fields
6.417.0*
BP Net
To date, oil production has been from fields located in
the Central Arctic, an area spanning 122 miles from the
Colville to Canning Rivers. These fields are primarily
on state lands and adjacent waters of the Beaufort Sea.
Northstar produces from both state and federal waters in
the Beaufort Sea.
Gross Field
Oil (thousands bbl/day)127 418
*TAPS Throughput since 1977
North Slope facts
The North Slope is a flat, treeless wetland, which extends
88,000 square miles, from the foothills of the Brooks
Mountain Range to the Arctic Ocean and west from the
Canadian border to the Chukchi Sea. BP’s footprint on the
North Slope encompasses about 312 square miles.
Location
Roads and causeways
BP maintains more than 300 miles of roads and causeways
in the fields it operates. There are also several roadless
areas between facilities, and the open ocean around
Northstar, owned by Hilcorp. To move materials and
supplies, temporary ice roads may be constructed during
the winter.
Prudhoe Bay is located about 600 air miles north of
Anchorage and about 1,200 miles south of the North Pole.
It is about 250 miles north of the Arctic Circle. This region
includes the Arctic National Wildlife Refuge (ANWR), the
Central Arctic (area between the Colville and Canning
Rivers), the National Petroleum Reserve Alaska (NPRA),
the Beaufort Sea Outer Continental Shelf (OCS), and the
Chukchi Sea OCS areas.
NPRA
Trans Alaska
Pipeline
Prudhoe Bay
ANWR
Fairbanks
Anchorage
Valdez
Nikaitchuq
Oooguruk
(ENI)
Juneau
(Caelus)
Fiord
Northstar
(ConocoPhillips)
(Hilcorp)
Milne Point
(Hilcorp)
Alpine
(ConocoPhillips)
Nanuq
Point McIntyre
(BP)
West Beach
(BP) Niakuk
(BP)
Lisburne
Endicott
(BP)
(Hilcorp)
(ConocoPhillips)
Alpine Pipeline
Nuiqsut
Tarn
(ConocoPhillips)
Meltwater
30
(ConocoPhillips)
Liberty Prospect
(Hilcorp)
Kuparuk
(ConocoPhillips)
0
Greater
Prudhoe Bay
(BP)
Trans Alaska
Pipeline System
(TAPS)
5
10
MILES
Deadhorse
Badami Pipeline
Badami
(Miller)
Pt. Thomson
Prospect
(ExxonMobil)
31
BP Exploration (Alaska) Inc.
900 E. Benson Blvd.
P.O. Box 196612
Anchorage, AK. 99519-6612
Main switchboard
907-561-5111
Alaska Press Office
907-564-5143
alaska.bp.com