Hilcorp acquires additional Inlet oil assets

Hilcorp Alaska will purchase XTO Energy assets in the Middle Ground Shoal of Cook Inlet and is also studying a possible restart of a shut-in platform in the field.

Two oil-producing platforms, tank facilities and an office and support facilities at Nikiski, near Kenai, are included in the purchase deal with XTO, the company said in a statement issued July 6.

“Hilcorp anticipates making offers to all 31 employees that currently operate the Middle Ground Shoal assets,” spokeswoman Lori Nelson wrote in an email.

Meanwhile, Hilcorp is also studying a possible restart of one of two shut-in platforms also in the Middle Ground Shoal field. There were four platforms installed in Middle Ground Shoal, one of the earliest offshore producing fields in Cook Inlet, but only two platforms are still producing.

The purchase announced July 6 includes the operating “A” and “C” platforms, originally built in 1965, which produce about 1,750 barrels of oil per day, Nelson said. XTO is a subsidiary of ExxonMobil Corp.

Two other platforms, Baker and Dillon, were shut in several years ago by Chevron Corp., then the owner and operator. Hilcorp Alaska now owns the Baker and Dillon platforms.

Hilcorp purchased Cook Inlet offshore oil platforms formerly owned by Chevron in 2012 and has rejuvenated several platforms after considerable investment.

When Hilcorp purchased Chevron’s Cook Inlet oil producing assets in 2012 they were producing 17,000 to 18,000 barrels per day. By late 2014 Hilcorp had built the production back to almost 40,000 barrels per day. The company has been investing about $350 million a year rejuvenating old wells and production facilities, Hilcorp officials have said.

The company has been investigating a reactivation and production restart at the shut-in Baker platform but the work was interrupted by a fire in October 2014.

“We are focused on reconstruction and repair of the Baker at this time. We don’t anticipate reactivation until sometime next year,” Nelson said.

The transaction with XTO will close sometime this fall following approvals of state agencies and regulatory officials, Nelson said.

 

Tim Bradner can be reached at tim.bradner@alaskajournal.com.

More in News

A young volunteer chases three piglets named Mary Hamkins, Petunia and Sir Oinks-a-lot through a race during the pig races at the Kenai Peninsula Fair on Friday, Aug. 16, 2019 at the Kenai Peninsula Fairgrounds in Ninilchik, Alaska. (Photo by Megan Pacer/Homer News)
Kenai Peninsula Fair canceled this year

Cotton candy, carnival rides and racing pigs will have to wait for… Continue reading

COVID-19. (Image CDC)
State reports new 30 new cases; hospitalizations reach new high

The cases include 28 residents and two nonresidents.

photos by Megan Pacer / Homer News 
                                A youth rider takes a turn riding a bull calf during the 60th annual Ninilchik Rodeo on Saturday, July 4 at the Kenai Peninsula Fairgrounds in Ninilchik. The rodeo lasted throughout the July Fourth holiday and celebrated a return to the event’s roots.
Riding high in Ninilchik

Ninilchik Rodeo celebrates 60 years with events new and old.

A closed sign is posted at a retail store shuttered due to the new coronavirus, in Soldotna, Alaska, on Wednesday, April 1, 2020. (Photo by Erin Thompson/Peninsula Clarion)
Soldotna to vote on relief funds for businesses, nonprofits

CARES Relief and Recovery Grant funds would be rolled out in two phases.

COVID-19. (Image CDC)
Case count dips after 5 record days of positive cases

Alaska has had 1,338 cases of the disease since the state began tracking the pandemic in March.

An adult, female bald eagle was rescued from a tree Saturday in Juneau. The eagle was taken to Alaska Raptor Center in Sitka. (Courtesy Photo | Kerry Howard)
Juneau bald eagle rescued on Fourth of July

Injured but conscious, the raptor will get treatment in Sitka.

Robin Richardson, right, and her coworker Ellen Paffie from Georgia get ready for the night shift at White Plains Hospital in White Plains, New York on May 7, 2020. (Photo courtesy Robin Richardson)
Soldotna nurse joins COVID-19 fight at New York hospital

Richardson cared for 53 critically ill COVID-19 patients. Only two of those patients lived.

COVID-19. (Image CDC)
COVID-19 week in review: Case count jumps; new hospitalizations, deaths reported

The current average positivity rate for all tests conducted is 1.39%.

‘Crowning jewel’

Iron Mike statue unveiled at Soldotna Creek Park

Most Read