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NorthAmOil                                    INVESTMENT                                          NorthAmOil


       ExxonMobil reportedly weighing Bakken sale





        NORTH DAKOTA     EXXONMOBIL is reportedly considering a  Bakken assets averaged gross production of
                         sale of its assets in North Dakota’s Bakken play.  95,993 barrels of oil equivalent per day (boepd)
                         Citing sources familiar with the matter, Bloomb-  in 2021, with oil accounting for 65%.
                         erg reported that the super-major had been   The potential sale comes as oil prices remain
                         approached by interested parties.    at multi-year highs despite falling somewhat in
                           According to the sources, ExxonMobil could  recent days. Meanwhile, ExxonMobil contin-
                         receive up to $5bn for the assets. And one of the  ues its push to boost shareholder returns, and
                         sources added that the company was in the final  shedding non-core assets could help with this.
                         round of interviewing banks to help launch a sale  According to its fourth-quarter earnings release,
                         process.                             ExxonMobil generated $3bn in cash proceeds
                           The people cautioned, however, that a final  from asset sales in 2021. Now, it could continue
                         decision on pursuing a sale had not yet been  this run of asset sales by offloading its Bakken
                         made and that ExxonMobil’s plans could still  properties.
                         change.                                The higher oil price environment could also
                           A sale could make sense given how little focus  bolster the Bakken’s prospects by making certain
                         ExxonMobil has had on the Bakken in recent  wells more economically attractive than they
                         years. Energy analytics firm Enverus said in a  had been previously. However, analysts have
                         note that the super-major had not run a rig in the  cautioned that takeaway capacity constraints for
                         Bakken since September 2020, having averaged  associated gas production will limit how much
                         three rigs in the play over the whole of that year,  Bakken activity could be spurred by recent price
                         down from six in 2019. ExxonMobil’s comple-  trends.
                         tion programme in the Bakken has also declined,   Nonetheless, deal-making in the play is also
                         Enverus added, from 103 wells in 2019 to 15 in  in the spotlight currently after Bakken play-
                         2020 and 21 reported to date for 2021.  ers Oasis Petroleum and Whiting Petroleum
                           Enverus estimates that ExxonMobil’s operated  announced a merger last week.™


                                                   PERFORMANCE

       ConocoPhillips cuts output at



       Alaska site on ongoing gas leak





        ALASKA           AN uncontrolled leak of natural gas at an oil  believe it will need a relief well.
                         production site operated by ConocoPhillips in   An investigation is also being carried out to
                         Alaska remained ongoing as of March 16 after  determine the source of the leak and the volume
                         being discovered on March 4. The company said  of natural gas released, according to the Alaska
                         this week the leak was coming from a “shallow  Oil and Gas Conservation Commission.
                         gas zone” and not the producing formation.  As a precaution, 300 workers were evacuated
                           The leak was found at the company’s Alpine  from the site, on Alaska’s North Slope. Beyond
                         unit, which is located about 8 miles (13 km) from  CD1, no leaked gas has been found, and no peo-
                         the Alaskan community of Nuiqsut. Production  ple or wildlife have been harmed, according to
                         from the unit has fallen from 51,000-58,000 bar-  ConocoPhillips.
                         rels per day in February to 36,861 bpd on March   CD1 is a critical facility for the Alpine field,
                         13 – the most recent day for which data were  since it is where crude from five production pads
                         available – according to the Alaska Department  comes together to be transported to a pipeline to
                         of Revenue.                          the Kuparuk River field and Pump Station One
                           The leak was detected at Alpine’s oldest drill  at the Trans-Alaska Pipeline System (TAPS).
                         pad and production site, CD1. A spill of saline   The leak follows the launch of a new
                         water was also discovered at the site.  court-mandated environmental impact
                           The company is now carrying out prepara-  statement (EIS) for ConocoPhillips’ planned
                         tions to begin diagnostics and remediate the  Willow development located west of Alpine,
                         gas source, and has said it is mobilising a drill-  which could produce up to 160,000 bpd. That
                         ing rig in order to “proactively address source  project has been stalled in the courts since
                         mitigation of the surface gas release at Alpine  August after a judge overturned an earlier
                         CD1”. The size of the leak has not yet been dis-  approval, finding fault with the environmental
                         closed but ConocoPhillips has said it does not  analysis used for it.™



       P8                                       www. NEWSBASE .com                         Week 11   17•March•2022
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