Serica Mulls UK Columbus Options

UK independent Serica Energy said, in an operations update January 29, that it will decide on its North Sea Columbus gas project this year.

It needs to choose one of two offtake routes for its central UK North Sea gas/condensate project: into the Shell-operated Shearwater platform 35km away, or into the Chrysaor-run Lomond platform. The former would rely on a subsea development via a future pipeline operated by the Arran field owners tying into Shearwater, whereas the latter would involve drilling an extended reach well from Lomond.

Serica said: "The Columbus partners intend to make a decision on the optimum route and submit a Field Development Plan by the end of 1H2018. Depending on the route selected, first production could be as early as 2019 or in the case of the Shearwater option, 2021." Columbus has been independently audited as having 53.8bn ft³ gas and 3.7mn bbls liquids, a total of 12.6mn barrels of oil equivalent (of which 6.3mn boe net to Serica). Serica 50% is Columbus operator, partnered by Endeavour and EOG (each 25% interest).

Serica als said that tendering is underway for a drillrig to start an exploration well in 2H2018 on Rowallan, a central UK North Sea prospect where best estimate prospective resources are 19.7mn boe at 100 equity; Serica has a 15% interest at Rowallan, which is operated by Eni with 40%, with Japanese partners JX Nippon 25% and Mitsui 20%.

CEO Mitch Flegg said its  acquisition of assets from BP, announced November 2017 and worth some $300mn ($397mn), will significantly expand the firm and "add substantial value" for shareholders; it is due to complete 3Q2018. Serica also said it sees "increased exploration activity and renewed industry enthusiasm in both Ireland and Namibia" where it is seeking a farm-in partner on its licences in both regions.

Production in 2017 at the Erskine gas/condensate field was some 1,975 boe/d net to Serica. Output from the field, however, has been blocked for a week by a build-up in the Lomond to Everest condensate export pipeline. Serica though said that a "de-blocking operation is underway and the company and its partners are considering options aimed at delivering a permanent solution for the wax condition." 

Columbus gas/condensate project in the UK Central North Sea (Map credit: Serica Energy)