Cosmopolitan

Cosmopolitan Oil and Gas Field Profile

Location

The Cosmopolitan Oil and Gas Field is located in the southern part of the Cook Inlet Basin, Alaska, USA. It is situated close to the shoreline at Anchor Point on the Kenai Peninsula, with the field itself approximately 2.5 miles offshore.

Discovery and History

• The field was initially discovered by Pennzoil in 1967 through the drilling of the first exploration well, which produced at a rate of 75 barrels of oil per day (bpd).
• Subsequent drilling activities were conducted by ConocoPhillips in 2001 and 2003 with the Hansen 1 and Hansen 1A wells, respectively. Pioneer Natural Resources conducted a 3D seismic survey in 2005 and drilled the Hansen 1AL1 well in 2007, producing 35,000 barrels of oil.
• In August 2012, Pioneer Natural Resources sold its 100% share in the project to BlueCrest Energy (75%) and Buccaneer Oil (25%). BlueCrest Energy later acquired Buccaneer’s 25% share, becoming the sole owner and operator.

Reserves

• The Cosmopolitan Oil and Gas Field is estimated to hold proved and probable (2P) reserves of approximately 55.2 million barrels of oil equivalent (MMboe) as of August 2012.

Development Plan

• The initial development plan involves vertical drilling of offshore gas wells and water injection wells using the Endeavour rig to target shallow gas formations. Directional wells will be drilled from onshore locations to target deeper oil accumulations.
• Two gas-only production platforms will be installed offshore, each with a designed dry gas production capacity of 30 million standard cubic feet a day (MMscfd). These platforms will be tied back to the existing onshore site via subsea pipelines.
• BlueCrest plans to drill 10 production wells and 10 injection wells, with the aim of having oil flowing from at least one well by May 2016. At its peak, the field may produce up to 17,000 barrels of oil per day.

Drilling and Operations

• Drilling activities are conducted using the Endeavour – Spirit of Independence jack-up rig, which was upgraded at Keppel FELS’ Singapore shipyard. This rig is capable of operating in water depths up to 300ft and drilling to depths of up to 25,000ft.
• A proposed onshore drilling rig, a 3,000HP unit, is planned for drilling to depths of more than 30,000ft.
• The field's development also includes the construction of onshore facilities, such as a tank field with lined containment berms and a sound and visual barrier to mitigate environmental impacts.

Infrastructure and Logistics

• Gas produced from the field will be conveyed to the gas transportation line owned by Enstar. Oil will be transported to the Tesoro Kenai refinery using trucks, as other methods like pipelines or barges are not currently feasible or preferred.
• The onshore site includes facilities for power generation using efficient gas turbines powered by gas from the prospect, and backup power from Homer Electric Association. Drinking and camp water will be trucked in from Homer or Anchor Point to address local water well concerns.

Employment and Economic Impact

• The project is expected to employ up to 200 workers during the construction phase through the spring of 2016, up to 160 workers during drilling operations, and up to 60 workers during the 30-year operations phase.

Environmental and Safety Measures

• The project includes several environmental and safety measures, such as lined containment berms to hold 110% of the oil from all tanks combined, LED lighting to minimize light pollution, and a 14-foot-high sound and visual barrier around the site.

Current Status

• Construction began in June 2015 with dirt work at the onshore site. Drilling activities started in the winter of 2015, and the first oil production was expected by May 2016. As of 2017, BlueCrest was actively drilling and producing, with plans to complete additional wells and production laterals.

Contractors and Partners

• The drilling contractor for the project is Spartan Offshore Drilling. Global Offshore Engineering (GOE) performed a full rig condition survey for the Endeavour rig. The Endeavour rig is owned by Kenai Offshore Ventures (KOV) and chartered by Kenai Drilling, a subsidiary of BlueCrest Energy.