ConocoPhillips has announced the successful startup of Qannik, the third Alpine satellite oil field, approximately two months ahead of schedule.
The Qannik accumulation is located near the CD-2 drill site two miles west of the main Alpine processing facility in the Colville River Unit on Alaska’s North Slope. Qannik is expected to have annual peak production of approximately 4,000 barrels of oil per day gross in 2009.
The Qannik discovery was announced in 2006 and approved for development prior to the recent oil tax increases. It is being developed exclusively with horizontal well technology and employs water injection to enhance oil recovery. The current approved plan for the Qannik development will entail drilling a total of approximately eight wells. Qannik joins the Fiord and Nanuq satellites, which began production in August 2006 and November 2006 respectively.
Design, fabrication and construction of Qannik involved more than 200 people over the past two years, and represents approximately $200 million in capital reinvestment. The development was built as an extension of the Alpine CD2 drill site, and will be processed through the existing Alpine facilities. Alpine is located 35 miles west of the Kuparuk River Unit on the border of the National Petroleum Reserve-Alaska.
ConocoPhillips is operator of and holds a 78% interest in the Qannik field and Anadarko holds a 22% interest.
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