UK Regulator Okays Two Field Developments
The UK offshore regulator Oil & Gas Authority has cleared Zennor Petroleum's plan to develop the Finlaggan Field in the UK Central North Sea (block 21/05c), of which it owns 100%, Zennor said October 22. The same day it also cleared BP's Alligin development plan.
The Finlaggan development project aims to recover 26mn barrels of oil equivalent proven + probable gas condensate reserves using two subsea production wells tied back 20 km to the ConocoPhillips-operated Britannia platform. First production from Finlaggan is expected in Q4 2020.
Transocean’s Paul B Loyd Junior is drilling the wells, the first of which is cased, cemented and ready for completion and clean-up later in the drilling programme.
The subsea construction contract has been awarded to TechnipFMC, with the main installation works planned for 2019. This includes the laying of a 10-in pipe-in-pipe production flowline and electrohydraulic control umbilical back to Britannia. Zennor has also signed a £170mm ($222mn) loan to fund the Finlaggan development into production in 2020.
Zennor's CEO Martin Rowe said that 2018 had been a "transformational year," with the recent purchase of an 8.97% working interest in the Britannia Field, subject to partner and regulatory approval. This has doubled its production to circa 5,000 barrels of oil equivalent (boe)/day. "
The OGA said that it was "pleased to approve the Finlaggan field development. The gas field, which was discovered 13 years ago, will tie-back to the Britannia facilities, utilising existing infrastructure, maximising economic recovery from the region”.
Alligin cleared
The OGA also approved BP's £230mn Alligin field development, saying that the fast-tracked project will "maximise economic recovery through utilising capacity in the Glen Lyon floating production, storage and offtake vessel and is a good example of the competitive advantage available to operators from the extensive infrastructure installed in the UK Continental Shelf”.
Alligin will target 20mn boe, and is expected to produce 12,000 boe/day gross at peak. The field, which BP owns equally with Anglo-Dutch major Shell, is 140 km west of Shetland in a water depth of 475 metres. It forms part of the Greater Schiehallion Area.
The development will include new subsea infrastructure, consisting of gas lift and water injection pipeline systems, and a new controls umbilical. The wells will be drilled by the Deepsea Aberdeen rig, BP said.
It is BP’s second North Sea development approval in the past two months. Vorlich, which targets 30mn barrels of oil equivalent, received regulatory approval in September.