BP Prepares for Next Development West of Shetland

abarrelfullabarrelfull wrote on 06 Aug 2012 09:33
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14 June 1995

BP Exploration announced today that it has commissioned the Atlantic Frontier Alliance - a consortium of Brown & Root, Single Buoy Mooring and Harland and Wolff - to begin preparatory work on a floating production system for the second stage development of its West of Shetland discoveries.

The initial phase of the contract, worth some £14 million, will cover early work on key aspects of the scheme, including design and engineering.

The go-ahead for the development itself will require the sanction of the participants' boards as well as the consent of the Department of Trade and Industry.

It is intended, subject to the successful completion of this year's appraisal programme, that the floating production system will operate in the Schiehallion field.

Schiehallion lies in 375 metres of water, 150 kms west of Shetland in UK blocks 204/20, 204/25b, 205/16 and 205/21b, all operated by BP, and 204/25a, operated by Amerada Hess.

Subject to the necessary consents being obtained, first production is scheduled for late 1997 and oil would be produced through subsea wells into a steel floating production storage and offtake vessel (FPSO) stationed permanently in the field. Oil export would initially be by shuttle tanker.

The Atlantic Frontier Alliance plans to base its FPSO on a vessel to be built at Harland and Wolff, in Belfast, with storage capacity of 850,000 barrels and facilities for gas-lift and gas- and water-injection. It is anticipated that UK industry would provide over 80% of the FPSO's component parts.

Participants in blocks 204/20, 204/25b, 205/16 and 205/21b are:-

  • BP Exploration (Operator) 50%
  • Shell UK Exploration and Production 50%

Participants in block 204/25a are:-

  • Amerada Hess Limited (Operator) 47.05%
  • Aran Energy Exploration Limited 17.65%
  • OMV (UK) Limited 17.65%
  • Murphy Petroleum Limited (a subsidiary of Murphy Oil Corporation) 17.65%

Notes:
The Schiehallion discovery well, 204/20-1, was drilled by BP on ninth round acreage by the semi-submersible rig, Ocean Valiant, in the autumn of 1993.

The successful test of well 204/25a-2, announced by Amerada Hess and its co-venturers in October 1994, confirmed the extension of Schiehallion into block 204/25a.

In February 1995, BP and Amerada Hess signed a Joint Appraisal Agreement to provide a framework for studies to determine the commercial potential of Schiehallion. The main elements of the programme are appraisal wells 204/25a-3 drilled by the Dyvi Stena and 204/20-5 drilled by the Henry Goodrich. An extented well-test is currently under way on well 204/20-5.


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