Licence P193 - Licence Having Effect Under The Petroleum Act 1998

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12 December 2000

Pursuant to regulation 5(8) of the above Regulations, the Secretary of State for Trade and Industry gives notice that, being content that the requirements of the above regulations have been satisfied, he has, pursuant to Licence P193, granted consent to BP Amoco for the laying of a pipeline (hereafter referred to as "the project"). The consent took effect on 12 December 2000.

Pipelaying operations are planned to commence in March 2001.

BP propose constructing a subsea pipeline to carry natural gas from the Foinaven, Schiehallion and Loyal fields west of Shetland to the Sullom Voe Terminal in Shetland. The pipelines from Foinaven and Schiehallion will meet at a Pipeline End Manifold (PLEM). The gas will be treated at Sullom Voe terminal and enriched with Liquefied Petroleum Gas (LPG), which is currently exported by tanker. A further subsea pipeline from Sullom Voe to the Magnus platform will transport the enriched gas where it will be injected into the oil-bearing rock using wells designed for gas injection.

The enriched gas will act as a solvent that removes oil remaining in the rock enabling normal production processes to be effective. The additional oil recovered will partially replace decreasing levels of production due to natural decline of the Magnus reservoirs.

A section of the pipeline from Schiehallion to the PLEM will be trenched with the rest of the pipeline surface laid. A survey will be carried out after the pipeline has been laid to identify areas requiring rock dumping.

A pressure test will be conducted using water treated with oxygen scavenger, biocide and dye. Test water will be discharged subsea at the PLEM and either discharged or injected underground at Magnus.

Only minor modifications will be required to the existing production facilities. Six existing water injection wells at Magnus will require modification. All re-drilling of wells will involve the use of oil based muds with the drill cuttings re-injected into a formation above the Magnus reservoir.

The Secretary of State is of the view, having regard to the environmental statement prepared in respect of the project and the comments received from those consulted, that the project is not likely to have significant effect on the environment. In coming to this view the Secretary of State has taken into account advice received from a number of independent experts.

The ES presents a detailed account of all environmental impacts associated with the development. No significant impacts have been identified from the proposed development activities and they are unlikely to affect any possible future offshore SAC that may be identified in the area. The JNCC and FRS have no objections.

The DTI as competent authority under the Habitat Regulations 1994 has undertaken an appropriate assessment of the Magnus EOR project's implications for the Sullom Voe candidate Special Area of Conservation. The assessment concluded that the proposed project will not adversely effect the integrity of the site. Scottish Natural Heritage agrees with the conclusions of the assessment.


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