Jersey to re-phase Buchan timeline over electrification plans
UK-based Jersey Oil & Gas is looking into the electrification potential for its Greater Buchan Area (GBA) development project in the North Sea, which would make it the first new development in the UKCS to be fully powered by electricity.
As a result, the company will re-phase its key project milestones like FEED entry, FID, and first oil dates to allow enough time for the incorporation of regional electrification studies.
The GBA project is located in the heart of the Central North Sea and Jersey has progressed plans to deliver a phased, low carbon, oil hub development.
Jersey revealed on Tuesday that there is significant stakeholder interest in working collaboratively to enable the GBA Development to become an integral part of an area-wide electrification project, which offers many potential benefits through possible reductions in both capex and opex.
Jersey said that the FEED entry, together with previously advised Final Investment Decision (FID) and first oil milestone dates, will be re-phased once near-term studies on regional electrification have progressed to provide a sufficient definition of the options available. Jersey’s GBA Development farm-out process remains ongoing.
Jersey believes it is essential for it to work collaboratively with all stakeholders in order to deliver an optimum and sustainable development solution to support the UK’s economy, as the UK progresses through its targeted energy transition. As such, JOG has furthered engagement in multi-party conversations on the topic of electrification with the UK’s Oil and Gas Authority (OGA), oil and gas industry parties, and potential third-party funding providers (infrastructure funding businesses).
“We are excited by the potential for the GBA Development to be the first new development in the UKCS to be fully powered by electricity and firmly believe it can play a regional electrification role in collaboration with other asset owners and producers”, the company said.
Accordingly, JOG has elected to re-phase FEED entry, FID and first-oil milestone dates in due course in order to allow sufficient time for the incorporation of regional electrification studies in collaboration with other offshore operators/owners into FEED workflows.
The FEED entry was previously expected in 3Q 2021, the FID was expected in H2 2022, and the first oil from Phase 1 in 4Q 2025, Phase 2 in 2027, and Phase 3 in 2028.
In parallel, JOG has continued to progress its pre-FEED work programme which includes environmental, geotechnical and geophysical surveys of the cable route for power from shore, jacket and piling data and pipeline route data requirements. The data acquisition stage of such surveys was completed on 14 August 2021 with analysis of the acquired data ongoing, which will form inputs into the environmental impact assessments for the GBA Development.
Andrew Benitz, CEO of Jersey Oil & Gas, commented: “Our GBA Development represents a major opportunity in the UK Central North Sea to extract locally sourced hydrocarbons profitably and at low-cost, with basin-leading low carbon emissions. The UK will continue to require responsibly produced hydrocarbons to support its planned energy transition for some time to come. We are determined to play as responsible a role in this as possible recognising that industry underinvestment risks driving prices higher, thereby making energy less affordable for consumers”.
Jersey revealed its preferred development concept for the GBA project back in March 2021, which is centred around a single, normally manned, integrated wellhead, production, utilities and quarters platform to be located at the Buchan field.
The selected concept for GBA development is planned to be executed in three Phases. Phase 1 will deliver a single integrated wellhead, production, utilities, and quarters (WPUQ) platform located at the Buchan field. Production from the reservoirs will be supported by the injection of both produced water and seawater. The facility will be normally manned. The Buchan wells will be drilled utilising a heavy-duty jack-up located over a 12 slot well bay.