Dutch operator curbs gas production from North Sea field over low prices
Dutch exploration and production operator Tulip Oil has reduced its gas production from the Q10-A gas field located in the Dutch sector of the North Sea due to low gas prices.
The Q10-A field started producing gas in February 2019. The development required the installation of a 42km pipeline from the Q10-A location to the P15d platform for export.
Heerema Fabrication Group built the unmanned offshore platform, which was installed offshore in December 2018
In the first quarter of 2020, Tulip produced 198 million standard cubic meters of gas from the field.
However, according to Tulip’s update on Monday, the production from the Q10-A field has been partially reduced to “leave gas in the ground” in view of the current low gas prices.
As a result, 119 million standard cubic meters of gas have been produced during the second quarter of the year.
The average realized gas price was 5.6 €/MWh during 2Q compared with 9.9 €/MWh in the previous quarter.
Tulip said that the production is being maintained at some 1 million cubic meters of gas per day. The reservoir models have been calibrated and preparations continue for two additional future Q10 wells.
Steps are also being taken to increase production capacity substantially by activating existing third-party compression facilities. Spare production capacity is being managed in conjunction with the gas price outlook.
Tulip Oil added it continues to mature additional new drilling targets predominantly to appraise reservoirs near the producing Q10-A field.
These targeted reservoirs have been drilled historically and flowed gas to the surface, similar to Q10 before the 2015 “discovery” well.