Zennor Completes UK Subsea Work

Private Zennor Petroleum has completed the Finlaggan subsea installation campaign in the Britannia area of the UK North Sea, using three separate vessels mobilisations over the summer, it said October 12.

The Finlaggan manifold was installed adjacent to the two Finlaggan production wells (F1 and F2). The 145-metric ton structure will allow well stream level metering to be conducted and provides potential tie-in points for additional wells and fields.

At year end the Finlaggan development project will be over 90% complete and on target for first production in Q4 2021 following the rescheduled Forties Pipeline System shutdown in Q2 2021.

Zennor also said that in Q3 this year it increased its senior secured term loan facility to fund the Finlaggan project to £185mn, and extend it by one year in line with the latest Finlaggan development schedule.

CEO Martin Rowe said that Zennor was "delighted to have overcome the disruption from the Covid-19 pandemic in order to accomplish this milestone for the Finlaggan project.... With first production now scheduled for Q4 2021, we also greatly appreciate the extension and upsizing of our loan facilities and would like to thank our lenders for their ongoing support and endorsement of our project.”

Zennor was among the privately-backed companies that entered the North Sea in 2015 when oil was $30/barrel. It bought First Oil and Rowe told NGW last year that the margins on production were "robust down to those levels." Among its backers is Kerogen.