By OGJ editors
HOUSTON, Sept. 5 -- BP Group has reported an oil discovery on Block 16/28 in the central North Sea near Andrew field, 230 km northeast of Aberdeen. The Farragon discovery is estimated to contain 30 million bbl of oil, BP said.
The Ocean Nomad semisubmersible drilling rig, owned by Diamond Offshore Drilling Inc., Houston, drilled the 16/28-17 discovery well under the supervision of ENI UK Ltd., which, along with partner EnCana (UK) Ltd., financed the well under a farmin arrangement with field operator BP. ENI, formerly Agip UK Ltd., became operator for the drilling of the well as part of the farmin obligation in exchange for ENI's gaining participating interest in the block. BP holds a 50% interest in Block 16/28; ENI holds 30%, and EnCana 20%.
BP and its coventurers now are evaluating the discovery and its potential for development.
"Farragon is good news for the offshore industry, as exciting discoveries like these, though not large by global standards, are key to maintaining the vitality of the UK sector," said Tim Summers, business unit leader for BP's mature business in the North Sea. "Such discoveries�along with continuing investment in brownfield development� will make best use of the existing offshore infrastructure and will help extend the life of the North Sea," he said.
Production from Farragon would most likely be tied in to nearby Andrew field, which was discovered in 1974 with reserves of 119 million bbl of oil and condensate and 134 bcf of associated gas. It has been producing since mid-1996 (OGJ, July 8, 1996, p. 22). Andrews feeds oil into the Forties pipeline system and gas into the CATS (Central Area Transportation) system.
"This is very encouraging news for the industry," said Stephen Timms, UK Minister for Energy. "It confirms there are still significant opportunities for investment in the North Sea. This arrangement between BP, ENI, and EnCana demonstrates the willingness to innovate and collaborate to stimulate activity."