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What is being described by Chevron officials as a misinterpretation of comments has caused a bit of stir over the airwaves and in Cook Inlet offshore oil production circles. 062909 NEWS 1 Peninsula Clarion What is being described by Chevron officials as a misinterpretation of comments has caused a bit of stir over the airwaves and in Cook Inlet offshore oil production circles.
Monday, June 29, 2009

Story last updated at 6/29/2009 - 12:52 pm

Inlet oil activity restart on tap?: Chevron sets mid-August as reasonable target date

What is being described by Chevron officials as a misinterpretation of comments has caused a bit of stir over the airwaves and in Cook Inlet offshore oil production circles.

On June 19, Kenai Peninsula Borough Mayor Dave Carey and members of his staff traveled to Anchorage to meet with forestry officials and to visit Chevron's new Midtown office building.

Following the meeting with Chevron General Manager-Alaska John Zager, Carey was interviewed last week on a local Kenai radio station about a number of topics and, according to Carey, his comments were rearranged in an order that gave the impression he said Chevron plans to restart Cook Inlet production within a week.

"That wasn't at all what I was saying," Carey said Thursday.

"There was word that things were moving along that could lead to a start up in six to eight weeks," he said.

Production from Chevron's offshore platforms has been suspended due to concerns over the erupting Mount Redoubt volcano.

Normally, Chevron operates at a rate of about 7,500 barrels of oil per day gross, according to company spokeswoman Roxanne Sinz, and Chevron offshore operates at 58 million cubic-feet per day of natural gas.

Approximately 40 percent of Chevron's net production comes from the North Slope and 60 percent from combined onshore and offshore Cook Inlet Basin.

Worldwide Chevron's Cook Inlet production amounts to less than 1 percent.

On Thursday, Sinz said she and Zager met with Carey and some of his staff, and "there were some comments misinterpreted by them."

"We believe we may have a restart of Chevron Cook Inlet operations during the third quarter, hopefully," Sinz said. "That's dependent on Mount Redoubt's continued cooperation."

While the Alaska Volcano Observatory reports continued eruption of the volcano, little more than intermittent steam plumes are rising from its northwest side where a massive lava dome is building.

Volcanologists have said the dome could erupt in a huge explosive event or the volcano could cool and return to its dormant state.

Sinz said no company employees were laid off during the volcano's eruptive activity, which began March 15. Some contractors were let go early on, she said.

Chevron employees have been performing some work onshore in the interim and are doing maintenance work on the offshore platforms.

Approximately 185 Chevron employees are assigned to field locations, in the Cook Inlet Basin, including Swanson River employees. Normally, Chevron employs approximately 80 contractors.

"A restart of Chevron's Cook Inlet oil operations during the third quarter is possible, and at this point, mid-August in not an unrealistic target," Sinz said. "This is all dependent upon Mount Redoubt's continued cooperation.

"Once Cook Inlet Pipe Line (company) is capable of producing service, return to production of individual platforms could be accomplished from a matter of days to weeks," she said.

Phil Hermanek can be reached at phillip.hermanek@peninsulaclarion.com.


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