UK: EnQuest gets approval for North Sea oil field development
- Project & Tenders
EnQuest, a UK-based petroleum exploration and production company, has informed that its Scolty/Crathes development, in the UK North Sea, has been approved and sanctioned.
Scolty and Crathes oil fields are located in Blocks 21/8a, 21/12c and 21/13a of the central North Sea sector of the UK continental shelf in an area with water depths varying from 95 m to 105 m.
The Scolty/Crathes development has been approved by the UK Oil & Gas Authority. EnQuest is the operator of the development with a 50% working interest.
According to EnQuest, the Scolty/Crathes project has been sanctioned with a net development cost of approximately $125 million.
The development plan consists of single horizontal wells to be drilled in each of the Scolty and Crathes fields. The fields will be tied back to the Kittiwake platform, in the Greater Kittiwake Area (GKA) where the production fluids will be processed and then exported to shore via the Forties Pipeline System.
The potential for such a tie back was one of the original rationales for the acquisition of GKA, EnQuest said. Namely, in February 2014, EnQuest acquired a 50% stake and operatorship of GKA which consists of the Kittiwake field and surrounding development/acreage. EnQuest also acquired a 100% interest in the Kittiwake to Forties oil export pipeline.
Production from the Scolty/Crathes fields is expected to continue until 2025 which also extends the life of the GKA hub to 2025.
The company says that development well drilling is anticipated by mid-2016, with first oil from Scolty/Crathes expected by the first half of 2017. The Scolty/Crathes development itself is anticipated to have gross peak volumes of 10,000 Boepd in its first year and combined with the resulting increase in GKA reserves, the project is estimated to increase EnQuest’s net 2P reserves by c.9 million barrels.
The company also says that the cost of the tie back and the work required on the topsides of the Kittiwake platform have been agreed on a fixed lump sum turnkey basis and will only become payable after a first oil determined date.
The UK-based exploration and production company also said on Tuesday it has seen its production rise in the second half of 2015.