Oil Production Starts from Schiehallion Field

abarrelfullabarrelfull wrote on 07 May 2012 07:31
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29 July 1998

BP announced on behalf of the Schiehallion field partners - BP (operator), Shell, Statoil, Amerada Hess, Murphy and OMV - that oil production started today at an initial rate from the first well of 30,000 barrels a day.
The Schiehallion development centres on 29 seabed wells in four drilling centres, producing oil via manifolds through steel pipelines and then flexible risers into the purpose-built Schiehallion FPSO,a floating production, storage and offloading vessel.

BP's Schiehallion business unit manager Pat McHugh said: "Schiehallion has come on stream just 27 months from sanction and less than five years after discovery.

"The cost of developing Schiehallion will be about ú1 billion, 80 per cent of which was placed in the UK. At peak, the project supported more than 3,000 jobs around the UK. About 2,500 of those were split equally between work at the shipyard in Northern Ireland and numerous oilfield specialists and fabrication companies in Scotland.

"The waters to the west of Shetland do not make an easy operating environment and we are using the floating production technology which is evolving in the UK. We are developing in an area which does not have the infrastructure benefits available in the North Sea but, in spite of this, our subsea facilities were installed and commissioned to plan. The commissioning team on the FPSO have done an outstanding job preparing the vessel for first oil.

"Committing to this project required a belief that we could overcome obstacles and uncertainties. We went ahead with the confidence that we could make it happen with the help of the best in Britain's offshore industry."

Oil from the field is stored in the FPSO's double-sided tanks and is offloaded into a dedicated purpose-built shuttle tanker, the Loch Rannoch, every five to six days at peak production. The shuttle tanker, operated and crewed by BP officers, will transport oil to the Sullom Voe oil terminal in Shetland where it will be stored in dedicated tanks.

Notes to Editors:

Schiehallion was discovered in autumn 1993. The discovery well, 204/20-1, was drilled by BP on ninth round acreage by the semi-submersible rig Ocean Valiant. Schiehallion lies in 375 metres water depth in UK blocks 204/20, 204/25a, 204/25b, 205/16, and 205/21b. Loyal lies in block 204/20.

The development is based upon producing 340 million barrels contained within the main field and a further 85 million barrels from the Loyal reservoir which overlies it. Peak production of 154,000 barrels of oil a day is expected and the FPSO can store over 900,000 barrels.

As part of BP's initiatives to reduce emissions, gas from the reservoir will be re-injected into a separate structure. In addition, volatile organic compound (VOC) emissions will be reduced through the use of a displaced gas recycling system when transferring oil to the shuttle tanker.

On long term charter, the Loch Rannoch shuttle tanker is operated by BP Shipping on behalf of BP Exploration. The vessel was built in less than a year and is currently being fitted out; it will be in delivered in August. The tanker Nordic Savonita will be used in the interim.

The participants in Schiehallion are:

  • BP Exploration (Operator) 33.35 per cent
  • Shell UK Ltd. 33.35 per cent
  • Amerada Hess Limited 15.669 per cent
  • Statoil (UK) Limited 5.877 per cent
  • OMV (UK) Limited 5.877 per cent (a subsidiary of OMV Aktiengesellschaft)
  • Murphy Petroleum Limited 5.877 per cent (a subsidiary of Murphy Oil Corporation)

The participants in Loyal are:

  • BP Exploration (operator) 50.0 per cent
  • Shell U.K. Ltd 50.0 per zent

Contracts:

  • FPSO design, engineering and procurement: Brown and Root
  • FPSO vessel construction: Harland and Wolff
  • Turret and mooring system: Single Buoy Mooring
  • Risers: Coflexip Stena
  • Well engineering: BP and PRISM
  • (a joint venture between Baker Hughes INTEQ and Schlumberger Oilfield Services.)
  • Subsea design, fabrication and installation: Kvaerner/Aker/Subsea Offshore
  • Shuttle tanker built: Daewoo, Korea

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