Engineering news
The company has proven its Halifax prospect and nearby Lancaster field are part of the same huge reservoir that could contain 1 billion barrels of recoverable oil.
"I am delighted that the Halifax Well results support the company’s view that its substantial Lancaster discovery has been extended to include the Halifax licence,” said Hurricane Energy chief executive Robert Trice. “We believe that the Greater Lancaster Area is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf."
The company has suspended the Halifax well to undertake further testing, as well as provide the option to deepen the well and establish a definitive oil water contact.
Hurricane's next step will be to get funding to help it pay for an early production system, which is expected to require several hundred million pounds.
Production of the area, which is located about 60 miles west of Shetland, is expected to start in the first half of 2019.
The news has been welcomed by those in the industry, but highlights the need for investment in the sector.
“Signs of optimism, mainly led by exploration and production companies, are returning to the basin, which has worked hard to reduce its costs and improve efficiency,” said Deirdre Michie, chief executive of Oil & Gas UK. “However, the UKCS needs fresh investment so it can capitalise on its potential, whether that be from new geological plays, or from enhanced recovery from existing fields.”
Paul Wheelhouse, Scottish government minister for business, innovation and energy, added: "While the outcome in the Flyndre and wider Greater Lancaster fields has been very welcome, it remains clear that without the right support for greater investment and activity, we risk losing vital capacity and skills which will support ongoing production and ensure we maximise economic recovery from the North Sea and best sustain domestic energy security."
Meanwhile, Wood Group has renewed its North Sea contract with Premier Oil. Aberdeen-based Wood Group has been awarded a $50 million (£39.8 million) contract to deliver topside operations and maintenance services to the Balmoral floating production vessel (FPV) in the Central North Sea and the Solan installation, West of Shetland.
The two-year contract which has three, one-year extension options, retains more than 150 jobs and extends Wood Group’s support of Premier Oil in the UKCS; the company has delivered operations, maintenance and engineering services to the Balmoral FPV since 2012.
“This contract clearly demonstrates the strong partnership we have developed with Premier Oil in the North Sea; renewing our support of the Balmoral FPV and broadening our delivery to include the Solan field, which came on stream in April 2016,” said Dave Stewart, chief executive of Wood Group’s Asset Life Cycle Solutions business in the eastern region.
“We have consistently and successfully assured the management of safety and integrity and applied our innovation and technical expertise to maximise uptime and production, whilst also reducing field lift costs.”
Wood Group also currently supports Premier Oil in the delivery of fabric maintenance services to the Balmoral FPV in a separate contract held since 2014.