A state-run regulatory agency has issued a fine of Hilcorp $267,000 for unauthorized modifications to equipment on Milne Point, one of its North Slope oil fields.
This Alaska Oil and Gas Conservation Commission ordersays that Hilcorp’s permit to drill for a well known as I-27 permitted using an electric submersible pump. A subsequent investigation revealed that Hilcorp had used the jet pump, but had not informed authorities of this alteration.
The order states that Hilcorp has a history of non-compliance with regulatory requirements, which includes greater than sixtyenforcement actions. Regulators discovered problems in Hilcorp activities located in Cook Inlet and on the North Slope. Many of them involved making changes to a permit plan.
In Milne Point, three workers almost diedin 2015 when Hilcorp put nitrogen down the well without permission rather than the seawater it was planning to utilize. The nitrogen was leaking into a trailer in which the workers were working.
Hilcorp announced that it began an investigation immediately after learning about the pump replacement that was not authorized and is already reviewing the procedures and training.
“An important aspect of Hilcorp’s ethos is to improve every day. We are looking forward to working together alongside AOGCC to ensure compliance responsible, safe activities,” the company said in an email.
A recent Alaska Oil and Gas Commission order states that the measures Hilcorp is taking are limited and likely to stop a repeat of the same incident.
