KEEP Alaska Competitive

It didn’t quite go as planned – the first section of the Trans Alaska Pipeline that was installed 50 years ago on May 24.

Here’s the New York Times account: “Two weeks ago Alyeska flew newsmen and dignitaries to witness installation of the first buried pipe at the Tonsina River Crossing 75 miles north of Valdez. A portion of those 1,500 feet of steel later floated to the top of the river, but Alyeska blamed the complications on concrete-weighted collars designed to hold the pipe in place. The company said the situation was corrected a short time after it occurred."

And an account from Alyeska engineer, Bill Howitt, "An empty pipe is buoyant, so it had to be weighed down with a 7,000-pound horseshoe. If it isn’t done right, the pipe comes floating to the surface. The first pipe went in, and there were dignitaries all around (including Sen. Ted Stevens), and everybody clapped, and kind of walked away, and they were almost gone when the concrete weight slipped off, and she came up.”

It took about 2,000 welders – an elite group of craftsmen predominately affiliated with Pipeliners Local 798 – two years and about 71,000 field welds to turn more than 100,000 pieces of 40-foot pipe into the Trans Alaska Pipeline.

Less than five years after arriving in the Alaska oil patch, Australia's no. 2 oil and gas producer joined the elite ranks of North Slope producers.

Santos announced first oil from its Pikka phase 1 development over the weekend. The company is the operator of the project and holds a 51% interest, with partner Repsol holding the remaining 49%. Production will ramp up to 20,000 bbl/day over the next few weeks, capping at 80,000 bbl/day (gross) during the third quarter. Some 28 development wells have been drilled, of which 21 have been stimulated and flowed back in line with pre-drill expectations. First sales revenue is expected to be approximately two to three months following first oil, with Santos and its partner alternating tanker shipments from the Port of Valdez.

Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said Pikka is a tier-one asset in one of the world's super basins. "Alaska has a huge runway ahead of it, which will underpin value-accretive production growth for Santos.

"The Pikka phase 1 project has demonstrated Santos' capability to develop this world-class resource safely, responsibly and efficiently. We are already implementing technical drilling improvements that save time and cost, and we will continue to drive improved performance into the future.

"As we now take Pikka phase 1 into operations, we are transitioning from project ex*****on to our disciplined, low-cost operating model, which will maximize the project's value for our shareholders for the long term,” he said.

Photo Credit: Monica Sterchi-Lowman | Alaska Business