More time for UK operator to breathe life into two North Sea oil discoveries

UK-headquartered oil and gas player Orcadian Energy has received a license extension, which enables it to pursue the development of two oil discoveries in the North Sea that are planned to be developed in tandem using a pair of wellhead platforms tied back to a floating production, storage, and offloading (FPSO) vessel envisioned to be deployed at another discovery under development on the UK Continental Shelf (UKCS).

The extension of Phase B of the P2482 license gives Orcadian until July 14, 2027, to progress the Elke and Narwhal discoveries, which contain net 2C resources of 45 MMbbl and 9 MMbbl, respectively, as audited by Sproule. The UK firm has identified a further 53 MMbbl of prospective resources with geological chance of success ranging from 64% to 87%.

These resources have also been supported by the relative extended elastic impedance analysis done by TGS, which has undertaken to shoot 100 square kilometers of new 3D seismic over P2482 upon approval of the Pilot field development plan. Orcadian claims that this seismic, set to be shot during Phase B of the license, will cover the Narwhal discovery, which is currently mapped on 2D seismic only.

According to the UK player, the extension of the license will enable it, as the Elke operator, to explore alongside Ping Petroleum, which is the operator of Pilot, the optimum area development plan with the North Sea Transition Authority (NSTA).

Currently, Ping continues to move forward with the Pilot development planning work and is working with SNF, a supplier of polymer to the oil industry, and Heriot-Watt University to optimize the polymer flood approach for the project. Orcadian has an 18.75% carried-to-first-oil interest in this development.

Furthermore, Ping is progressing a low-emissions, phased field development plan for Pilot based upon a polymer flood of the reservoir, an FPSO, and provision of power from a floating wind turbine or a local wind farm.

Steve Brown, CEO of Orcadian Energy, commented: “We are delighted to have received this licence extension which maximises the probability of us designing an area development plan which optimises the development of all the viscous oil resources in the Pilot area. We believe that Pilot and Elke can form the basis of a new low-emissions hub for the development of the major resources in this area.“

Orcadian is working in partnership with the Independent Power Corporation (IPC) and the Marine Low Carbon Power Company (MLCP) to place the ownership of license P2680, containing Earlham and Orwell, and potentially license P2650 with shallow gas prospects, into a corporate joint venture structure.

This move is expected to support the plan to deliver carbon-free energy from new, offshore balancing power plants to IPC’s large energy user customers.  

“We are also very enthused by the potential to be involved with IPC’s project to deliver reliable electrical power from our gas resources, we really believe that the IPC and MLCP projects can demonstrate that abated gas works and is critical to the success of the UK’s clean power plan,” added Brown.