Sterling Expects Cladhan FDP Approval by March End (UK)

Sterling Expects Cladhan FDP Approval by the End of March

Sterling Rescources, a Canadian-listed international oil and gas company headquartered in Calgary, in its operational update issued Tuesday informed that a final version of the Cladhan Field Development Plan (“FDP”) was submitted to DECC at the beginning of February 2013.

The Cladhan Field is located in the northern North Sea, approximately 100 km north east of the Shetland Islands in a water depth of approximately 500ft. The field lies about 20 km south-west of the Tern Field. The field straddles UKCS blocks 210/29a and 210/30a.

Approval of the FDP is expected at the end of March 2013. The planned development calls for 2 subsea producers and 1 subsea water injector tied back 18 kilometers to the Tern platform operated by TAQA Bratani Limited. TAQA Bratani holds a 40.1% working interest in the Sterling-operated Cladhan discovery located in Blocks 210/29a and 210/30a, following three separate transactions.

Export of oil is planned via the Brent Pipeline System and then onto Sullom Voe in the Shetland Islands with the timing of first oil expectations ranging from end fourth quarter 2014 to end first quarter 2015.

Christmas trees, wellheads and subsea controls have been procured. Line pipe was committed to at the end of February 2013. The remaining equipment and services (valves, umbilicals, flexibles, compressor rewheeling, installation, etc.) are planned to be committed upon project sanction at the end of March 2013. Drilling is due to commence utilizing the Transocean GSP, John Shaw drilling unit in late 2013.

Cost updates have continued with various front-end engineering and design tender responses received, which have improved confidence in the overall project capital expenditure estimate. The total development cost (excluding appraisal well costs) is estimated to be £100 million net to Sterling, which includes a £12 million contingency.

Offshore Energy Today Staff, March 6, 2013

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