Lake Barre - Hilcorp

Location

The Liberty Prospect is located approximately 8.85 kilometers offshore in the Beaufort Sea, within Foggy Island Bay. It is about 32 kilometers east of Prudhoe Bay and 13 kilometers east of the existing BP-operated Endicott oil field.

Ownership and Operatorship

In November 2014, Hilcorp Alaska, LLC acquired primary ownership and operatorship of the Liberty Project from BP. This acquisition was part of a larger transaction where Hilcorp also acquired interests in other BP-operated oilfields on the North Slope of Alaska.

Reserves and Production

Hilcorp estimates that the Liberty Unit contains approximately 150 million barrels of recoverable, high-quality crude oil.

Project Overview

The Liberty Development Project involves several key components:

• Island Construction: The project includes the construction of a man-made gravel island, known as the Liberty Drilling and Production Island (LDPI), in about 19 feet of water, approximately 5 miles offshore in Foggy Island Bay.
• Facilities Development: The LDPI will be a self-contained offshore drilling and production facility, including infrastructure such as a drill rig, utilities, and living quarters.
• Pipeline Installation: A subsea pipeline will be installed to transport sales-quality crude oil to shore, where it will connect to an above-ground pipeline and eventually to the existing Badami pipeline.
• Mine Site Development: A mine site will be developed to supply gravel for the construction of the LDPI.

Environmental and Regulatory Aspects

• Environmental Impact Statement (EIS): The Bureau of Ocean Energy Management (BOEM) initiated a process to prepare an EIS to analyze the potential environmental effects of the project. This process includes public comment periods and reviews under the National Environmental Policy Act.
• Permits and Approvals: The project requires various permits and approvals, including those from state and federal agencies. For example, the Alaska State Historic Preservation Office has concurred that a "Finding of No Historical Properties Affected" is appropriate for the proposed Liberty Project.

Access and Transportation

Access to the Liberty Project will be facilitated through various means:

• Ice Roads and Trails: During the ice-covered season, Hilcorp will construct annual ice roads and trails to allow vehicle access.
• Hovercraft, Boats, and Helicopters: These will be used for access during ice-free periods, freeze-up, and break-up periods.

Project Phases

The project will go through several phases, including:

• Construction Phase: This involves the construction of the LDPI, mine site development, and pipeline installation.
• Drilling Phase: Drilling operations will be conducted from the LDPI.
• Production Phase: This phase includes the production of oil and ongoing maintenance of the facilities.
• Decommissioning: Plans for decommissioning the facilities are also part of the overall project plan.

Community and Stakeholder Engagement

Hilcorp is required to provide plans and updates to affected communities for their review and comment. Feedback received will be incorporated into the project documents and future operations.