EAST BRAE, TON! PROJECTS PACE N. SEA ACTION

The U.K. Department of Energy has approved two new development projects in the central U.K. North Sea.

Marathon Oil U.K. Ltd. received the go-ahead for 1.5 tcf/300 million bbl East Brae gas/condensate field in Blocks 16/3a and 16/3b. Agip U.K. won the nod to develop 40 million bbl Toni oil field in Block 16/17 as a satellite to its Tiffany development.

Meantime, Scottish analysts County Natwest Woodmac, estimate 53 development projects may gain government approval the next 3 years contributing to a revival in offshore production that could equal or exceed the 2.5 million b/d peak achieved in 1985.

Spending on existing projects also will rise, partly as a result of implementing recommendations from the Cullen report into the Piper Alpha disaster (OGJ, Dec. 3, p. 36). Shell U.K. Exploration & Production, operator for the Shell-Esso combine, said it would spend 1 billion ($1.94 billion) on upgrading its platforms in the U.K. North Sea the next 5 years.

In the Norwegian North Sea, the Sleipner group led by Den norske stats oljeselskap AS (Statoil) plans to declare Sleipner's Theta satellite commercial and bring the reservoir on stream with the main gas field development in 1993.

If the development plan is approved, Statoil will install a four well subsea template connected to Sleipner A platform by a 5.6 mile pipeline. Sleipner Theta contains about 105 bcf of gas and 12.6 million bbl of condensate. Statoil's partners in the field are Esso Norge, Norsk Hydro, Elf Aquitaine Norge, and Total Marine Norsk.

EAST BRAE

Marathon plans a single platform on East Brae to handle a gas cycling project to start up in late 1993 and reach peak liquids output of 100,000 b/d in 1995.

The topsides will process 600 MMcfd of natural gas but deliveries will not begin until 2000.

Condensate will be transported through the existing Brae-Forties pipeline link. Unofficial estimates put development costs at 900 million ($1.75 billion).

Marathon's partners in East Brae are BP Exploration, Bow Valley Petroleum (U.K.) Ltd., Kerr-McGee Oil (U.K.) plc, Gas Council (Exploration ) Ltd., LL&E (U.K.) Inc., Sovereign Oil & Gas plc, and Norsk Hydro Oil & Gas Ltd.

TONI

Agip's Toni field will be developed through a seven well subsea satellite of Tiffany field.

Production is scheduled to start up in fall 1993, about 6 months after Tiffany.

Production of about 20,000 b/d of oil will be commingled with 65,000 b/d from Tiffany and linked into the Brae-Forties lines through a 3 mile spur.

Toni is expected to cost about 30 million ($252 million) in addition to the 480 million ($931 million) that will be spent on Tiffany.

Other members of the Agip group are British Gas plc, Fina Exploration, and LASMO North Sea.

SHELL SPENDING PLANS

Shell Expro's proposed l billion investment in its existing U.K. North Sea platforms has been approved by Shell U.K. Ltd. and Esso U.K. Exploration.

In a letter to staff that followed publication of the Cullen Report on the 1988 Piper Alpha accident, Shell Expro Managing Director Chris Fay said the company faces serious operational problems the past few years including aging and obsolete equipment, inadequate maintenance routines, and the changing demands of legislation.

The company's flow of oil from the North Sea has been reduced by a refurbishment program on the Brent complex that started in 1989. Fay said new investment will be in three stages: short term reinstatement, medium term interim refurbishment to maintain statutory certificates and platform integrity, and longer term major refurbishment or redevelopment.

"Unless we achieve this we will continue to have long, unscheduled shutdowns of our older platforms," he said.