BP Considers Closure of Badami Field in Alaska

BP is considering shutting down the Badami field on Alaska's North Slope due to poor performance. The field is located between Prudhoe Bay and the Arctic National Wildlife Refuge and contains and estimated 120 million barrels of oil.

Production commenced from the field in 1998, however, the field never hit its expected peak of 30,000 bpd. Production only hit 18,000 bpd and then eventually dropped to only 1,400 bpd.

BP has assigned a project team to evaluate closing the field. Among BP's options for Badami is to keep the facilities ready in case any other nearby prospects on the eastern North Slope become viable. BP is also seeking buyers for its Alaskan leases. Possibilities for tie-in to the facilities include the Point Thomson unit, which holds a deposit of condensed natural gas that Exxon Mobil is trying to develop, or the offshore Liberty unit, a prospect that holds an estimated 120 million barrels of oil but has been determined by BP to be too expensive to commercialize.