LOGIC satellite scheme comes into orbit

The first five undeveloped UK North Sea discoveries earmarked to be brought to market under government-industry initiative LOGIC's 'satellite accelerator' scheme were named late last week as the Solan and Strathmore, Kestrel, and Kessog discoveries, and the marginal Wood field. Total reserves for the five fields are estimated to stand at more than 200 million boe and could lead, according to LOGIC, to 'as much as �500 million of new development investment.'


Darius Snieckus
OGJ Online

LONDON�The first five undeveloped UK North Sea discoveries earmarked to be brought to market under government-industry initiative LOGIC's "satellite accelerator" scheme were named late last week as the Solan and Strathmore, Kestrel, and Kessog discoveries, and the marginal Wood field.

Total reserves for the five fields�operated by BP, Amerada Hess Ltd., and Shell Expro�are estimated to stand at more than 200 million boe and could lead, according to LOGIC, to "as much as �500 million of new development investment."

The field operators are said to be looking for "innovative" development proposals that will be advanced on a "collaborative basis," with LOGIC serving as facilitator. The LOGIC�or Leading Oil & Gas Industry Competitiveness�initiative was launched last September by the UK Department of Trade and Industry (OGJ, Sept. 13, 1999, p. 32).

BP's marginal Wood field, an oil and gas discovery left undeveloped by the operator as "subeconomic under current development scenarios," according to BP's Tim Smith, is scheduled to be the first development out of the blocks under the scheme. For commercial reasons, the oil company was not willing to disclose its reserves estimate for Wood.

Amerada's Solan and Strathmore oil discoveries in the West of Shetlands, Shell's northern North Sea Kestrel oil find, and BP's high-pressure, high-temperature gas condensate Kessog discovery will be rolled out on "a phased basis over the next 4-6 months."

Logic said "other opportunities" were expected to follow as the initiative gathered steam.

"These projects provide tremendous opportunity for the industry to demonstrate its ability to work in new ways to identify solutions to real technical and commercial challenges," said Logic Chief Executive Officer Chris Freeman. "They present real opportunities which will stimulate UKCS [UK Continental Shelf] activity and investment."

The satellite accelerator initiative, launched by UK Minister for Energy and Competitiveness Helen Liddell in June, was set up to "unlock the door" to the development of some 300 North Sea discoveries currently stranded by, being marginal, technically challenging, or commercial unviable.

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