Two oil field development projects have won the green light in the North Sea.
Norsk Hydro gained approval for its 8.4 billion kroner ($1.29 billion) Brage project off Norway. The 240 million bbl field will be developed with a single drilling and production platform linked to the nearby Oseberg crude oil pipeline to the Norwegian mainland.
In the U.K. sector, Amerada Hess Ltd. will shortly place on stream Hamish oil field, one of the smallest reservoirs to be tapped off Northwest Europe.
In other North Sea action, ARCO British Ltd. agreed in principle to sell all production from Pickerill gas field in the southern North Sea to Powergen as fuel for a 900,000 kw combined cycle power station planned for Killingholme, South Humberside.
BRAGE PROJECT
Norsk Hydro's current schedule calls for Brage start-up at the beginning of 1994 from a number of predrilled wells. Production is to peak at about 85,000 b/d later that year.
The field will be linked to Oseberg by an 8.7 mile, 12 in. pipeline.
Brage also holds 12 bcf of gas reserves. The Brage partners are committed to selling the gas rather than reinjecting it.
The Norwegian government reversed a previous order delaying field development for as long as 5 years. But Oslo decided to increase the state's direct holding in the field.
Under the terms of a sliding scale, Norwegian state participation will rise by 5% to 56%. The increased government holding is to be taken equally from interests held by Norsk Hydro, Den norske stats oljeselskap AS, Esso Norge, ARCO Norge, and BP Petroleum Development (Norway) Ltd.
Oslo ordered the delay in Brage development in May 1988.
The group then worked out a revised, slightly cheaper, development plan that allows for either a steel or concrete platform substructure.
Norsk Hydro expects to choose between the two designs after talks with potential bidders,
HAMISH FIELD
Amerada Hess will tap the 1.5 million bbl Hamish reservoir with a deviated well from the subsea manifold serving Rob Roy field. The well is expected to produce about 3,000 b/d.
Hamish is in Block 15/21b, near the floating production unit serving Amerada Hess's Ivanhoe and Rob Roy fields.
It is less than 1 mile from the Rob Roy manifold.
Block 15/21 b was awarded to the Amerada Hess group in the 10th licensing round 3 years ago.
Amerada Hess Managing Director Sam Laidlaw said the ability to find, appraise, and develop a small field in a speedy, profitable manner reflects the great potential for North Sea satellite fields using enhanced subsea technology.
Amerada's partners in the block are Deminex U.K. Oil & Gas Ltd., Kerr-McGee Oil (U.K.) plc, and Pict Petroleum plc.
PICKERILL PLANS
The ARCO group's Pickerill field, in Blocks 48/11a, 48/11b, 48/12c, and 48/17b, about 40 miles off the Lincolnshire coast, holds reserves of 75 bcf. Production is to start in 1992 and plateau at 210 MMcfd.
Pickerill is the first field in the southern U.K. North Sea in which all production has been sold to a customer other than British Gas plc.
Subject to government approval, ARCO will develop Pickerill with two production platforms linked by pipeline to the Conoco-BP Exploration gas terminal at Theddlethorpe, Lincolnshire.
Powergen and Conoco (U.K.) Ltd. recently announced a joint venture, Kinetica Ltd., to lay an independently owned gas pipeline between Theddlethorpe and the new power station.
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