Amerada Hess farms into Chestnut field off UK
Amerada Hess Ltd. has agreed to farm in to the Chestnut field on Block 22/2a in UK North Sea. The agreement follows Br�vig Production Services Ltd.'s announcement it would not be able to fulfill its contract to develop the field.
By the OGJ Online Staff
HOUSTON, Apr. 3�Amerada Hess Ltd. has agreed to farm in to Chestnut field on Block 22/2a in the UK North Sea.
The agreement follows Br�vig Production Services Ltd.'s announcement it would not be able to fulfill its contract to develop the field, said field partner Bow Valley Energy Ltd. The contract was announced last year (OGJ Online, Sept. 13, 2000). That agreement has been canceled, and a day rate services agreement made.
Amerada Hess will fund the remaining cost of the first phase of development and assume operatorship of Chestnut in return for 50% equity and a share of oil production revenues. Other partners' shares will be reduced proportionately.
The first phase of development is an extended well test of a newly drilled horizontal producer with subsea completion. The second phase is full development of the field. It is subject to a successful extended well test, regulatory consent, and partner approvals.
Production from phase one is expected in the second quarter of 2001.
Before the Amerada Hess transaction, Premier Oil Exploration Ltd. operated the block with 30%; Bow Valley held 17.75%, Roc Oil UK Ltd. 17.75%, British-Borneo Oil & Gas PLC 12.5%, Conoco Inc. unit Conoco UK Theta 12%; and TotalFinaElf SA 10%.