Tailwind wraps up Decipher Energy takeover

UK-based oil and gas company Tailwind Energy has completed its acquisition of Decipher Energy, which owns several assets in the UK North Sea.

Orlando field - Tailwind Energy
Orlando field; Source: Tailwind Energy

Tailwind announced its decision to acquire the compatriot Decipher Energy in early April 2021. The deal was subject to statutory regulatory and government approvals.

The takeover of Decipher Energy was to allow Tailwind to continue to deploy its strategy of exploiting organic production and near-term reserves growth opportunities whilst building out portfolio.

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Tailwind announced the completion of the acquisition of Decipher Energy and its subsidiaries, including a 100 per cent operated interest in the Orlando field, on Tuesday 8 June.

Decipher Energy is the 100-per cent owner of Licence P1606 which covers the Orlando field. The field is located in UKCS Block 3/3b, between the Ninian, Strathspey, Brent, and North Alwyn fields.

The Orlando consists of the subsea tie-back of a single horizontal production well to the Canadian Natural Resources International-operated Ninian Central Platform some 11 kilometres to the southwest. The field is expected to produce at a plateau rate of 10,500 bopd with base case reserves of 8 mmboe. It was brought online two years ago, thirty years after discovery.

Tailwind intends to maximise production from the Orlando field and assess options for further development of the Senna and Mansell licences (P.2311 and P.2448), which were also part of the Decipher Energy deal.

The Senna discovery has contingent resources of up to 60 mmbbls, with peak production potential from a 3 production well development of 24,000 bopd.

Mansell is located in the UKCS east of the Ninian and Columba fields. It was discovered by BP in 1985 and, following appraisal, was produced as a subsea tieback to the Ninian South Platform between 1992 and 1995. The Mansell field has contingent resources of up to 16mmboe.

Tailwind has also recently agreed to sell its entire working interest in the Conwy field to Eni as the asset now fits more readily into Eni UK’s Liverpool bay operation.

On the other hand, Tailwind decided to enter the Shell-operated Shearwater field located in the UK North Sea by acquiring BP’s entire working interest in the field.