PGS To Produce Ranger's Kyle Field

abarrelfullabarrelfull wrote on 20 Aug 2012 14:20
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June 9, 1998

Petroleum Geo-Services ASA (NYSE:PGO)(OSE:PGS) announced today that it has been awarded a contract by Ranger Oil (UK) Ltd. on behalf of the Kyle group which includes Premier Oil, Candecca Resources, Bow Valley Petroleum and Croft Oil & Gas, to produce the oil reserves of the Kyle field located 12 kilometers from Conoco's Banff field in the UK sector of the North Sea. The agreement is subject to final approval by the Banff field partners. The Kyle field, which was discovered in 1993, is expected to produce 33-43 million barrels of oil. The field will be produced by PGS' "Ramform Banff" FPSO which has been upgraded to process 95,000 barrels of oil per day.

The field will be produced from up to 5 subsea completed wells connected to the "Ramform Banff" FPSO by pipeline and flexible risers. Oil will be exported via the Banff shuttle tankers. The field development is subject to approval by the UK Government DTI.

Reidar Michaelsen, PGS' Chairman and Chief Executive Officer, commented, "This is the first contract to tie-back supplemental oil reserves to the newly created infrastructure in this area. This contract confirms PGS' strategy of deploying its FPSOs in prospective areas with numerous tie-back opportunities to enhance the returns on these assets. Since the basin surrounding the Banff field is very prospective, we expect that over time there will be several opportunities to tie-back additional fields that have already been identified. In addition, PGS will apply modern seismic technology to this region in order to provide our customers with the maximum amount of information necessary to improve the reservoir performance and recovery rate. If our customers are successful in increasing their recovery rates, PGS will share in their success because we are paid a fixed amount for each barrel of oil produced through our FPSOs."


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