Marathon alliance to develop Brae satellites

July 22, 1996
Marathon Oil U.K. Ltd. has formed an alliance with AMEC Process & Energy Ltd., London, to help develop other fields as satellites of U.K. North Sea Brae oil field. Brae field, on Block 16/7a, holds three fixed platforms. The 5 year alliance agreement covers engineering, procurement, construction, and installation services for topsides modifications to the Brae platforms, particularly to facilitate new field step-outs.

Marathon Oil U.K. Ltd. has formed an alliance with AMEC Process & Energy Ltd., London, to help develop other fields as satellites of U.K. North Sea Brae oil field.

Brae field, on Block 16/7a, holds three fixed platforms.

The 5 year alliance agreement covers engineering, procurement, construction, and installation services for topsides modifications to the Brae platforms, particularly to facilitate new field step-outs.

Peter Oswald, Marathon's topsides manager, said, "This is an umbrella contract that will cover any topside modifications on the Brae platforms for future third party and Brae area developments."

Satellite plans

West Brae is expected to be the first satellite project under this agreement.

A field development plan to develop this small oil find as a subsea satellite of Brae A platform has been submitted to the government. Marathon hopes for government approval of West Brae as a stand-alone development in early August, so it can work towards first oil production late in 1997.

However, Marathon is also negotiating with Enterprise Oil plc, London, over joint development of West Brae and nearby Sedgwick discovery as twin subsea satellites of Brae A.

Marathon let contract to McDermott Marine Construction Ltd., London, for preliminary engineering of West Brae development. This will form the basis of an engineering, procurement, construction, and installation contract once the development plan is approved. Under the new alliance, AMEC would work on topsides modifications to Brae A platform, while McDermott would work on subsea equipment.

"There are economic benefits to developing West Brae and Sedgwick jointly," said the official, "but West Brae's economics are robust enough to justify development on its own."

Marathon has "quite a few" prospects in the Brae area, some potential subsea tieback developments, others drilled from Brae platforms. Among those, Marathon plans to drill the Web prospect from nearby Brae East field platform on Block 16/3a later this year or early in 1997.

"We are also considering further third party developments," the official said. "Eight third party fields already use Brae infrastructure, and at least one other potential tie-in is being discussed."

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