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CNR keeping Teekay’s Petrojarl Banff FPSO for another year

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Canadian Natural Resources has extended the charter for Teekay’s Petrojarl Banff FPSO in the UK North Sea.

Teekay on Thursday said the FPSO would remain on the Banff field in the North Sea for one year to the end of August 2020, “at substantially similar terms to the current contract, which includes an upside component linked to oil prices and oil/gas production.”

“We are pleased to announce this important FPSO contract extension for the Petrojarl Banff, which extends the production of the fields in the North Sea, and we are committed to work together with CNR to maximize production in the future,” commented Kenneth Hvid, Teekay’s President and Chief Executive Officer.

The 120-meter long FPSO has been in production since January 30, 1999. It has a production capacity of 90,000 barrels a day, however, it is not producing at full capacity given that CNR’s overall North Sea production in the first quarter was 25,714 barrels of oil a day. For reference, the Banff FPSO three years ago celebrated 60 million barrels of oil produced since the start of production. At that point, the FPSO was producing approximately 7,600 barrels a day.

The FPSO is being used for production from the Banff and Kyle fields which lie approximately 200 miles east of Aberdeen in the Central North Sea, blocks 22/27a and 29/21.  Crude oil is stored on the nearby permanently moored shuttle tanker, Apollo Spirit. The CNR International operated Kyle field is tied back to the Banff FPSO. According to Data on CNR website, this arrangement and additional volumes of gas available for injection has increased the economic life of the Banff field.

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