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ExxonMobil Starts Production at Point Thomson


April 23, 2016
Saturday PM

(SitNews) - ExxonMobil said Friday it has started production at its Point Thomson project, the first company-operated project on Alaska’s North Slope.

Central pad facilities are designed to initially produce about 5,000 barrels per day of condensate and 100 million standard cubic feet per day of recycled gas. The recycled gas is re-injected for future recovery. At full rate production, the facility is designed to produce up to 10,000 barrels per day of natural gas condensate and 200 million cubic feet of recycled gas. It is anticipated to reach that level when the west pad well is online in a few months.

The Point Thomson reservoir holds an estimated 8 trillion cubic feet of natural gas and associated condensate – a high-quality hydrocarbon similar to kerosene or diesel. The resource represents 25 percent of the known gas on the North Slope. Potential future development will depend on a range of factors such as business considerations, investment climate, and the fiscal and regulatory environment.

Point Thomson facility. Point Thomson is located on state acreage along the Beaufort Sea, 60 miles east of Prudhoe Bay and 60 miles west of the village of Kaktovik.
Photo courtesy ExxonMobil

U.S. Senator Dan Sullivan (R-AK) congratulated the state of Alaska and ExxonMobil Friday for beginning production at the Point Thomson project on Alaska’s North Slope, Exxon’s first operated project in Alaska. The challenging field, which over the decades had numerous plans for development, contains a quarter of the North Slope’s massive natural gas reserves. Development of the field is a foundational element in a project that will commercialize Alaska’s North Slope natural gas.

In an announcement, ExxonMobil said that the field will soon be producing up to 10,000 barrels per day of natural gas condensate and 200 million cubic feet of recycled gas. These are production levels in line with the terms negotiated with ExxonMobil by Senator Sullivan when he first was the Alaska’s attorney general, and then the commissioner of the Department of Natural Resources. Settling the terms of development in Point Thomson was one of Senator Sullivan’s top priorities.

“The announcement that production has started at Point Thomson is very good news for Alaska,” Senator Sullivan said. “I’m pleased that ExxonMobil has abided by the terms of the agreement that I, along with my team, negotiated. The terms include firm time tables and strong Alaska-hire provisions. So far, the company has spent more than $4 billion on developing the field and has contracted with more than 100 Alaskan companies. The 10,000 barrels a day of condensate that will soon be flowing down the trans-Alaska oil pipeline will help boost state coffers, will help ensure uninterrupted flow through TAPs, and will open up the eastern North Slope for additional exploration and development. Further, production of the field brings us closer to realizing an Alaska natural gas pipeline.”

“The successful startup of Point Thomson demonstrates ExxonMobil’s project management expertise and highlights its ability to execute complex projects safely and responsibly in challenging, remote environments such as the North Slope in Alaska,” said Neil W. Duffin, president of ExxonMobil Development Company.

ExxonMobil and the working-interest owners have invested approximately $4 billion in the development of Point Thomson production facilities through 2015. About 100 Alaskan companies have contributed to the success of the project, and thousands of people worked onsite and around the state during peak construction activity.

“Our strong partnership with Alaskans and Alaska-owned companies played a critical role in helping to complete this major project,” Duffin said. “It further reinforces our commitment to pursuing the development of Alaska’s natural gas resources.”

Point Thomson is located on state acreage along the Beaufort Sea, 60 miles east of Prudhoe Bay and 60 miles west of the village of Kaktovik.


Edited by Mary Kauffman, SitNews


Source of News:


Office of US Senator Dan Sullivan


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