Hydro acquires interests in UK heavy oil fields

abarrelfullabarrelfull wrote on 12 Sep 2014 10:46

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Hydro has reached an agreement with Chevron North Sea Ltd. to acquire their total interests in the Mariner and Bressay fields on the UK continental shelf.

The acquisition contains 64.6 % in the Bressay field and some 45 % in the Mariner field, consisting of Mariner and Mariner East.

The fields have been appraised by many wells, but there are still uncertainties related to the potential recoverable reserves. Discoveries of heavy oil in Quadrant 9, where the two fields are located, were made in the 1970s and 1980s.

The agreement is subject to approval by UK authorities, partners and the concurrence of Chevron’s Senior Management.

Hydro will, conditional upon approval from partners and the UK authorities, take over operatorship of the fields.

It is too early to confirm the commerciality, but Hydro’s experience from the heavy oil fields Grane in the North Sea and Peregrino offshore Brazil will be valuable background when assessing the possibilities and looking for viable solutions for a development plan. A possible solution could be to create a hub in this area for more potential candidates for tie-ins.

“I am very pleased that we have reached this agreement with Chevron," says Torgeir Kydland, head of International Business Development in Hydro's Oil & Energy business area.

"Hydro has been looking for areas where our heavy oil experience could be a way of increasing commerciality in new fields. These prospects are near to our home ground, and what we have learned from the development and production at Grane has proven useful also in the development work at Peregrino and increasing the recoverable reserves there.”

Facts, after the agreement with Chevron:

  • P335, Mariner main part: Hydro 44,4 % ENI 28,9 % Nautical 26,7 %
  • P726, Mariner East: Hydro 62 %OMV 30 %ENI 8 %
  • P234, P493, P920 and P977, Bressay: Hydro 64,625 %Statoil 17 %Shell 18,375 %.

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