By the OGJ Online Staff
HOUSTON, Nov. 8 -- The UK Department of Energy has given approval for BG Group PLC to start a second drilling program on its Armada gas complex in the North Sea. The $100 million program is designed to maximize production between 2002 and 2010.
The heavy duty jack-up drilling rig Galaxy III is due to begin drilling the first of two wells early next week. A third may be drilled, depending on the results of the first two. The program follows successful reservoir and well performance in Phase 1.
Commenting Thursday, UK Energy Minister Brian Wilson said, "This new development is a further demonstration of UK companies' continued commitment to exploiting opportunities in the North Sea. It will do much to underpin confidence in the offshore industry and help encourage new investment."
BG Executive Vice-Pres. Jon Wormley said, "Armada has been a BG success story since first gas was produced in 1997. The original investment made by the partnership has resulted in a reliable and cost-effective contributor to our economic goals and strategies. This further investment is a confirmation of our belief and faith in the UKCS."
BG, as operator, holds a 45.27% interest in Armada. Its partners are BP 18.20%, TotalFinaElf Exploration Ltd.12.53%, Phillips Petroleum Co. UK Ltd. 11.45%, Yorkshire Energy Ltd.6.97%, and Agip (UK) Ltd. (5.58%).
The program is designed to extend the field's current production plateau of 450 MMcfd and extend the life of the field to 2010.
The three Armada fields -- Fleming, Drake and Hawkins -- extend over 31 sq km on exploration block 22/5b. First gas was produced on Oct.1997, after completion on schedule at a cost of �437 million, �100 million below budget. Gas is exported via the CATS pipeline to Teeside, with liquids transported through the Forties Pipeline System to Cruden Bay.
