ExxonMobil to begin Skene development

ExxonMobil Corp. has received permission from the UK Department of Trade and Industry (DTI) to begin its planned $400 million development of Skene field in the UK North Sea.

An ExxonMobil subsidiary, Mobil North Sea Ltd. (MNSL), will operate Skene, a gas-condensate field on Block 9/19 in 380 ft of water. Skene is expected to produce up to 180 MMcfd of gas plus 25,000 b/d of associated liquids when production begins in early 2002. Recoverable reserves are estimated at 95 million boe.

The field will be developed using a subsea manifold, which will be tied back by bundled pipeline to MNSL's existing Beryl Alpha platform 9 miles away. Gas will be exported from Beryl through the Scottish Area Gas Evacuation pipeline to the Mobil-operated gas processing plant at St. Fergus, Scotland. The oil and condensate will be combined with Beryl crude and exported by tanker to a number of oil terminals onshore.

Mobil North Sea holds a 38.22% interest in Skene. Its partners are Kerr-McGee Corp., 33.33%; Enterprise Oil PLC, 15.89%; Amerada Hess, 9.07%; and OMV (UK) Ltd., 3.49%.