TechnipFMC’s DSV begins well tie-in ops in North Sea

TechnipFMC’s diving support vessel (DSV) Deep Discoverer has mobilized to the Triton area in the North Sea and begun operations to tie in a Tailwind Energy well, according to UK-based oil and gas company Serica Energy.

The Gannet GE-04 well was drilled late in 2022 and completed in January, with first production expected this month.

According to Serica Energy, the well results were above the pre-drill expectation and flow rates are expected to exceed 8,000 barrels of oil per day when the well is fully beaned up during March.

In its most recent operations update, Serica also said it plans a number of interventions on Bruce platform wells in the second quarter and that the second Bruce light well intervention vessel campaign will take place in Q3 2023.

This follows on from the 2022 campaign and is designed to add production through re-entry and workover of existing production wells.

The first phase of the Bruce compressor upgrades will start this year, with commissioning in 2024. The project aims to reduce carbon emissions by 10 per cent of the Bruce total. Design and selection studies for compressor electrification projects have also commenced.

“The production performance of both the Serica and Tailwind portfolios has remained strong despite some extremely challenging weather conditions during January,” said Mitch Flegg, Chief Executive of Serica Energy.

“There is an exciting investment programme of value-adding activities throughout 2023 which has started with the work to tie-in the Gannet GE-04 well. I look forward to updating the market with results of this programme as data becomes available.”

Speaking about production, Serica noted its net production continues to benefit from the ongoing investment programs it has undertaken since the acquisition of interests in Bruce, Keith and Rhum in 2018.

The company’s 2022 net production averaged 26,182 boe/d. Early production rates in 2023 were slightly lower than the 2022 average, said to be due to a period of maintenance work on a gas compressor on the Bruce platform which limited Bruce and Rhum production, but has now been returned to service.

Net production from the Tailwind portfolio of assets averaged 19,600 boe/d in January, giving a combined net production rate of over 43,300 boe/d last month.

The average net production for 2023 from the combined Serica and Tailwind portfolios is expected to be in the range of 40,000 – 47,000 boe/d.

Furthermore, Serica noted that two conditions for the purchase of Tailwind Energy have been satisfied, including the approval by ordinary resolution of Serica’s shareholders to allot the consideration shares, received on 27 January, as well as the renewal or replacement of the OFAC License issued on terms which permit continued operation of the Rhum field, received on 31 January.

The remaining outstanding conditions are approval under the UK National Security and Investment Act 2021, receipt of the customary comfort letter from the NSTA, confirmation that the acquisition will not require the repayment of Tailwind’s existing RBL, and admission of the consideration shares to AIM.

The UK company noted that work continues on each of these and that it expects they will be satisfied before the end of March.