Oooguruk

Oooguruk Oil Field Profile

Location

The Oooguruk oil field is situated in the North Slope of Alaska, approximately 250 kilometers southeast of Barrow and five miles offshore from Harrison Bay in the Beaufort Sea. It is located in an area with an average water depth of about 1.5 meters.

Operators and Ownership

• Initially, the field was operated by Texas-based Pioneer Natural Resources, which held a 70% working interest. Italian major Eni held the remaining 30% interest, acquired through the purchase of Alaskan assets of Armstrong Oil & Gas in August 2005.
• In January 2019, Eni acquired an additional 70% interest and operatorship from Caelus Natural Resources Alaska LLC, bringing Eni's total working interest to 100%.

Production History and Current Status

• Production at the Oooguruk oil field began in June 2008. The field produces oil from two main zones: the Nuiqsut and Kuparuk C sand reservoirs, with API gravities of 22° and 25° respectively. Most of the production comes from the Nuiqsut reservoir.
• As of 2019, the field was producing approximately 10,000 barrels of oil per day (bopd) from 25 producing wells and 15 gas/water injector wells.
• The initial production rate was about 3,000 bopd, with anticipated peak gross production of 15,000-20,000 bopd by 2010. However, the actual peak production has been around 10,000 bopd.

Field Development

• The development of the Oooguruk field involved drilling horizontal development wells. The project included about 40 wells, with half being producing wells and the other half being injection wells, drilled between 2008 and 2011.
• The gross oil resource potential from these base development wells is estimated at up to 90 million barrels before considering expansion opportunities. The field's commercial life is expected to be 25 to 30 years.

Infrastructure

• The project consists of three main components:
  • An offshore drill site located on a 6-acre artificial gravel island.
  • An onshore interconnect and production support facility.
  • A system of flowlines, power cables, and communications cables connecting the onshore and offshore facilities.
• The onshore facilities include production modules (two-phase production separator, production heaters, multiphase production meters, and injection gas compressors), power generation facilities (three 5.5MW gas-fired turbines), and operations support utilities (back-up power generation, warehouse, and maintenance shop).
• Produced liquids are transported to the onshore Tie-in Pad via a subsea flowline bundle, which then connects to the Conoco-operated Kuparuk River Unit for processing. The flowline bundle includes a 12in multiphase pipeline, an 8in water line, a 6in natural gas line, and a 2in Arctic heating fuel line.

Operational Synergies

• Eni's acquisition of the additional 70% interest in 2019 allowed for significant operational synergies with the nearby Nikaitchuq oil field, which Eni operates with a 100% working interest. The Nikaitchuq field is located approximately 13 kilometers north-east of Oooguruk and produces about 18,000 bopd.
• Eni plans to drill further production wells at both Oooguruk and Nikaitchuq to increase total Alaska production beyond 30,000 barrels of oil equivalent per day (boed).

Environmental and Logistical Considerations

• The development of the Oooguruk field was complicated by Arctic weather conditions and seasonal constraints on transport and logistics, leading to a disproportionately high project cost.
• The production facilities are designed to ensure safe and environmentally responsible operations, with dry production trees on the artificial gravel island.

Future Plans

• Eni aims to enhance production through additional drilling and operational optimizations between the Oooguruk and Nikaitchuq fields. This includes leveraging existing relationships with local communities and further expanding Eni's presence in the region.