BP Awards Contracts to Begin Early Work on Central North Sea Fields

abarrelfullabarrelfull wrote on 06 Aug 2012 12:21
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15 June 1995
BP, on behalf of the ETAP participants, today announced the award of pre-sanction contracts for early planning, design and engineering work on the development of the Eastern Trough Area Project (ETAP), a cluster of offshore fields 150 miles east of Aberdeen.

The fields, in which seven partners hold varied interests, have combined estimated reserves of 400 million barrels of oil, 65 million barrels of natural gas liquids, and 1.45 trillion cubic feet of sales gas.

The development plan envisages an integrated scheme operated by BP, with expected production of some 200,000 barrels of oil a day at peak and 580 million cubic feet of gas.

It would comprise two small steel platforms in the Marnock field, one housing processing facilities and the other utilities and accommodation, along with a normally-unmanned platform in the Mungo field. The Machar and Monan fields would produce through subsea manifolds tied back to Marnock, as would the Shell operated Heron, Skua and Egret fields.

BP said the go-ahead for the development, and its precise timing, would depend on the approval of the boards of the ETAP partners and the consent of the Department of Trade and Industry.

Describing the ETAP scheme as "another example of how co-operation between co-venturers is helping to keep the North Sea competitive at low oil prices", Dr Chris Gibson-Smith, BP Exploration's European Chief Executive, said:

"We are awarding pre-sanction contracts now so that the ETAP team can work with the contractors to establish firm costs prior to any development decisions being taken, and to allow us to form a risk-reward alliance."

The pre-sanction contract awards are: design and Project Management: Brown and Root; Fabrication: AMEC, Trafalgar House, Consafe and Belleli; Pipelay: EMC/Coflexip Stena; Subsea Installation: Coflexip Stena; Transportation and Installation: Heeremac.

Current estimates indicate that if ETAP were to be sanctioned, some 80% of the total would be spent with UK companies.

Notes:
In 1992, BP and its partners signed a Joint Integration Studies Agreement to examine the feasibility study on an integrated development plan for ETAP which was followed by a Joint Planning Agreement which initiated the work required to deliver a sanctionable project by end-1995.

Today's announcements are for the BP-operated section of ETAP. Contracts for the Shell-operated fields will follow in due course.

Participants in the Marnock field are:-

  • BP Exploration (Operator) 59.50%
  • Esso Exploration and Production UK Ltd 15.00%
  • Shell UK Exploration and Production Ltd 15.00%
  • Agip 10.50%

Participants in the Mungo/Monan fields are:-

  • BP Exploration (Operator) 69.93%
  • BHP Petroleum 12.43%
  • Mitsubishi 5.00%
  • Murphy Petroleum Ltd (a subsidiary of Murphy Oil Corporation) 12.64%

Participants in the Heron, Skua and Egret fields are:-

  • Shell UK Exploration and Production 50.00%
  • Esso Exploration and Production UK Ltd 50.00%

The Machar field is owned and operated by:-

  • BP Exploration 100.00%

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