By OGJ editors
HOUSTON, July 18 -- Nexen Petroleum UK Ltd., operator of Ettrick oil field in the UK North Sea, has received UK government approval for the field's development plan, reported Bow Valley Energy Ltd., a 12% partner in the project.
Ettrick field, discovered in 1981 and appraised by seven wells, is scheduled to begin production by first quarter 2008. Production is expected to peak at about 20,000 b/d of oil, plus associated gas.
Field development will be phased, with the first phase consisting of three producing wells and one water injection well. The second phase will consist of one or two additional water injection wells, dependent upon field performance. The wells will be tied back to the Aoka Mizu floating production, storage, and offloading vessel.
Bow Valley said it has increased its 2006 capital expenditure budget to $120 million from $105 million, to pay for its share of the development costs of the Ettrick project.
R.G. Moffat, Bow Valley president and chief executive officer, said the development of Blane, Enoch, Chestnut, and Ettrick fields are forecast to add a combined 60,000 b/d (7,750 b/d net) of oil equivalent of new production over the next 12-24 months. He added that the resultant revenue and cash flow will enable the company to pursue drilling three to five offshore exploration wells/year.