CHEVRON PLANS N. SEA EOCENE DEVELOPMENT

Chevron U.K. Ltd., operator for a 10 company group, is ready to proceed with development of the North Sea's first Eocene reservoir. It will soon submit to partners its plan of development for Alba oil field in Block 16/26 of the U.K. sector. An appraisal program there also confirmed Kilda gas field underlying the Alba reservoir. Industry sources say Kilda is one of the biggest gas reservoirs in the northern part of the U.K. North Sea. Chevron has not disclosed the size of Kilda reserves

April 2, 1990

3 min read

Chevron U.K. Ltd., operator for a 10 company group, is ready to proceed with development of the North Sea's first Eocene reservoir.

It will soon submit to partners its plan of development for Alba oil field in Block 16/26 of the U.K. sector.

An appraisal program there also confirmed Kilda gas field underlying the Alba reservoir.

Industry sources say Kilda is one of the biggest gas reservoirs in the northern part of the U.K. North Sea. Chevron has not disclosed the size of Kilda reserves but confirmed they are "substantial" in northern North Sea terms.

PLANS FOR ALBA

The Alba group will evaluate options for a single large drilling and production platform or phased development of the 250-300 million bbl reservoir, a 1984 discovery.

Assuming there are no problems with partners, Chevron hopes for U.K. Department of Energy approval for the project by yearend. That would allow fast track development and production start-up in 1993.

Peak production is expected to be about 1 00,000 b/d.

A part of the appraisal program designed to evaluate a northern extension of the field found last year with the 16/26-15 well was disappointing. The 16/26-17 stepout was abandoned as a dry hole at 7,267 ft.

The 16/26-18 well, also in the north portion of the field, found the reservoir sands but was not tested.

It was abandoned at 8,266 ft.

Partners in Block 16/26 are Amerada Hess (E&P) Ltd. 2.25%, Aran Energy Exploration Ltd. 3%, Chevron 33-17%, Clyde Petroleum (Alba) Ltd. 5%, Fina Petroleum Development Ltd. 10%, Oryx U.K. Energy 15.5%, Phillips Petroleum Co. United Kingdom Ltd. 7.5%, Santa Fe Exploration (U.K.) Ltd. 11.75%, Triton North Sea Operators Ltd. 3.83%, and Unilon Oil Explorations Ltd./Baytrust Oil Explorations Ltd. 8%.

KILDA APPRAISAL

Chevron's 16/26-16 appraisal well found the Alba reservoir but was not tested in that pay.

The well was deepened to 14,094 ft to appraise the Lower Cretaceous Kilda reservoir. It found hydrocarbon bearing Kopervik sands.

A lower zone flowed 22 MMcfd of gas and 1,750 b/d of condensate, while an upper zone flowed 19 MMcfd of gas and 1,900 b/d of condensate. Both gauges were limited by capacity of the test string.

Kilda is a mid-1970s discovery. Chevron will drill a fifth well into the structure later this year.

Kilda extends into adjoining Block 30/16, operated by Conoco U.K. Ltd., and into Block 16/27b, operated by Chevron. The reservoir would be developed through a separate production complex and is unlikely to go on stream before the end of the century.

Conoco has undertaken an appraisal program in Block 30/16, where it drilled the block's sixth well last year as a tight hole.

Conoco acquired British Petroleum's one-third interest in the block last year by preempting Oryx's bid. Conoco now has a two-thirds interest in the block. Chevron holds the remaining interest.