NORTH SEA GAS PIPELINE LINES UP MORE SHIPPERS

Where CATS' Operations Are Focused (101844 bytes)

Central Area Transmission System (CATS) operator Amoco (U.K.) Exploration Co. continues to attract shippers seeking transportation for gas from wells in the central U.K. North Sea.

The CATS pipeline and processing system provide a direct 1.6 bcfd link with offshore wells in the area to onshore facilities at Teesside, England. The connection at Teesside provides a gateway for CATS shippers to markets in northern England that account for about 25% of the country's gas consumption.

CATS throughput in 1997 is to grow to more than 1.2 bcfd with gas from Erskine and Andrew fields, 150-160 miles east of Aberdeen. Gas shipments from those two fields will bring to nine the number of central U.K. North Sea fields served by CATS.

A unit of Texaco Inc. operates Erskine field, while a unit of British Petroleum plc operates Andrew on behalf of Britoil (Exploration) Ltd.

About 320 MMcfd of gas is under contract to flow through CATS, in operation since April 1993.

Rob Johnston, Amoco (U.K.) Exploration's CATS manager, said the new agreements with Erskine and Andrew partners reflect the importance of the pipeline's role in developing marginal reserves.

"CATS has been able to offer each of these new fields the opportunity to benefit from an existing large, flexible infrastructure, thus enhancing their economic development," Johnston said.

Amoco said talks with other possible CATS shippers are well advanced. The company is weighing plans to expand the system because of the high level of interest.

ERSKINE FIELD

CATS' agreement with Texaco provides for the offshore pipeline in late 1997 to begin shipping and processing as much as 120 MMcfd of gas and 31,800 b/d of condensate from Erskine field.

Erskine straddles Blocks 23/26a and 23/26b in about 300 ft of water.

Texaco first is to gather Erskine production for multiphase transport through a 16 in. pipeline to the Amoco-operated Lomond platform, 20 miles northeast. After processing at Lomond, Erskine gas is to move by pipeline to the CATS riser platform, operated by Amoco in North Everest field. From there, the gas is to flow to Teesside for processing at the CATS onshore terminal before delivery into Britain's National Transmission System (NTS).

Liquids are to move through BP's Forties pipeline, north of the Central Graben area, to Cruden Bay, north of Aberdeen.

Amoco is to prepare Lomond platform to receive Erskine gas and condensate by adding a dedicated 1,400 ton gas processing module.

The U.K. Department of Trade & Industry early in May approved the $465 million development program for Erskine field proposed by Texaco and BP, 50-50 partners in the project.

Partners estimate Erskine's reserves at 330 bcf of gas and 75 million bbl of condensate. Reserves lie in Jurassic sandstone intervals at about 15,000 ft.

OTHER CATS AGREEMENTS

Amoco's agreement with BP for Andrew field in Blocks 16/28 and 16/27a calls. for CATS to transport more than 40 MMcfd of gas beginning in October 1996 to an Enron operated processing plant at Seal Sands, near Teesside.

After treatment at Seal Sands, gas is to flow through a 4 mile pipeline being laid to Cowpen Bewley, where it is to be injected into the NTS.

Work is under way on an $80 million expansion that will allow CATS' Seal Sands terminal to process as much as 600 MMcfd of gas.

In addition to BP, Andrew operator for Britoil, companies with interests in Andrew are Lasmo North Sea plc, Mitsubishi Oil Co. Exploration (U.K.) Ltd., Clyde Petroleum (Andrew) Ltd., and Goal Petroleum plc.

Earlier, Amoco on behalf of CATS coventurers agreed to:

Transport and process 450 MMcfd of gas starting in mid-1997 from Fleming, Hawkins, and Drake fields in the BG operated Armada complex.
Transport 300 MMcfd of gas to go on stream early in 1996 in Judy and Joanne fields, operated by Phillips.
Transport as much as 320 MMcfd from Amoco operated Everest and Lomond fields, already on production.

In addition to Amoco, companies with interests in CATS are Amerada Hess Ltd., British Gas Exploration & Production, British Gas North Sea Holdings, Phillips, Agip, and Fina.