A final investment decision is anticipated later this year. Well positioned to progress into FEED in early 2021 for a singledrill site first phase of the Pikka Project. Oil Search is now focused on arrangements for a sell-down of a 15% interest in the development area (solely or in conjunction with JV partner Repsol) and securing project level financing to fund at least 50% of initial Phase 1 project costs. Increases reflect Oil Search’s positive achievements on the North Slope since acquisition of the assets in 2018, with gross 2C oil resources now 93 higher than the original 500 mmbbl 2C gross resource estimate. In addition, a 59-m bridge has been built spanning the Miluveach River and an 18-km gravel road has been constructed so that Pikka can have year-round access to the existing Alaska North Slope infrastructure. Groundwork carried out in 2020 included construction of pads for the Nanushuk B drill site, production facility, and operations center. The Oil Search Ltd.-operated joint venture on the North Slope of Alaska is preparing to enter the front-end engineering and design (FEED) stage for its proposed Pikka Phase 1 oil development early. Oil Search will invest 2.6 billion to bring the.
Located in the Nanushuk oil formation on state leases, the Pikka unit contains an estimated 768 million barrels of recoverable oil. The Pikka Phase 1 project, which is estimated to cost approximately 3bn, involves a single drill site and the development of 80,000 barrels of oil per day (bopd) capacity production facility. Alaska Governor Mike Dunleavy is praising today’s announcement by Santos and Repsol to move forward with Phase 1 of the Pikka project on Alaska’s North Slope.
The modules can be transported by truck to the North Slope which provides flexibility and reduces risk in the project schedule, the company said.Ĭapacity will be added in subsequent phases of the project. Papua New Guinea (PNG)-focused oil and gas firm Oil Search has commenced the front-end engineering and design (FEED) stage for Phase 1 of its Pikka oil development on the North Slope of Alaska. Oil Search said cost savings have been achieved by using standardized modular process facility design and off-the-shelf equipment. Phase 1 cost is estimated at $3 billion and is expected to produce oil at a breakeven cost of supply of less than $40/bbl Brent inclusive of 10% return. FID is targeted for late 2021, with first oil targeted for 2025. Oil will begin detailed engineering and procurement for the seawater treatment plant that will provide water to support the reservoir water-flood program. Oil Search has completed optimisation efforts and,subject to oil prices,the Joint Venture is preparing to proceed into FEED in early 2021 with Pikka Phase 1, based on a single drill site development with a production capacity of 80,000 bopd.
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