Glacier Oil and Gas, a subsidiary of Cook Inlet Energy, LLC, has been granted approval to suspend its operations at the Redoubt Unit (RU) by the Alaska Division of Oil and Gas.
In granting the Suspension of Operation and Production (SOP), Division Director Tom Stokes found that SOP will “promote the prevention of economic and physical waste, the conservation of natural resources and provide for the protection of all parties of interest, including the State.”
According to the Division’s letter, Glacier-Cook Inlet Energy will keep the RU facilities appropriately staffed and under continuous monitoring in order to comply with all state and federal regulations.
All oil producing wells will be shut in, all pipelines and flowlines will be purged, cleaned and protected from freeze and corrosion. All vessels and tanks used in processesing will be emptied and protected as applicable.
The Osprey platform and Kustatan production facility will be maintained in “warm standby” status.
Glacier cites the “present global condition of low crude oil prices combined with a lack of demand” as its reason for requesting this decision.