MORE U.K. NORTH SEA FIELDS SET FOP DEVELOPMENT

June 26, 1995
BP Exploration Operating Co. Ltd. has let first contracts that will lead to development of seven U.K. North Sea oil and gas fields in its Eastern Trough Area Project (ETAP). The fields hold combined reserves estimated at 400 million bbl of oil, 65 million bbl of natural gas liquids and 1.45 tcf of natural gas. Peak production is to be 200,000 b/d of oil and 580 MMcfd of gas. Also in the British North Sea, Conoco (U.K.) Ltd. is to invest 85 million ($125 million) in a compressor platform to

BP Exploration Operating Co. Ltd. has let first contracts that will lead to development of seven U.K. North Sea oil and gas fields in its Eastern Trough Area Project (ETAP).

The fields hold combined reserves estimated at 400 million bbl of oil, 65 million bbl of natural gas liquids and 1.45 tcf of natural gas. Peak production is to be 200,000 b/d of oil and 580 MMcfd of gas.

Also in the British North Sea, Conoco (U.K.) Ltd. is to invest 85 million ($125 million) in a compressor platform to boost capacity of its Caister/Murdoch gas field complex to 750 MMcfd.

ETAP PROJECT

BP's ETAP project involves development of its Mungo, Marnock, Machar, and Monan discoveries, as well as the Heron, Skua, and Egret strikes of Shell U.K. Ltd. Total development cost is expected to be more than 61 billion ($1.6 billion).

BP in May 1993 disclosed plans to develop ETAP fields, which lie in the southeast corner of Quadrant 22 and in Quadrant 23. Production is to get under way in fourth quarter 1998.

BP's Medan and Shell's Scoter discoveries also were earlier listed as development prospects (OGJ, May 17, 1993, p. 18). BP said these were not in the current development plan but could be brought in later.

The present development program calls for two small steel platforms in Block 22/24a Marnock field, one for processing and one housing utilities and accommodation, along with an unmanned satellite platform in Block 23/16a Mungo.

Machar, Monan, Heron, Skua, and Egret fields will have subsea production manifolds tied back to the Marnock platform.

Oil will move from Marnock to the Forties pipeline system tie-in on Unity platform.

Gas export options include a new pipeline to St. Fergus terminal north of Aberdeen, for which BP has started talks over landfall sites, and the Central Area Transmission System (CATS) pipeline operated by Amoco (U.K.) Ltd.

BP began a 10 month production test in Block 23/26a Machar field in 1994, by means of a subsea wellhead tied back to a semisubmersible rig converted to production.

Oil flowed directly into a shuttle tanker, and production halted while the tanker was away. Machar produced 7 million bbl of oil during the trial (OGJ, May 23,1994, p. 26).

BP has been involved in a "running

dialogue" with the U.K. Department of Trade & Industry over the development plan. ETAP partners are to seek approval of the development plan near yearend.

ETAP CONTRACTS

BP let contracts worth "tens of millions of pounds" for early design and engineering work on ETAP.

"We are awarding presanction contracts now," said Chris Gibson-Smith, chief executive of BP Exploration Europe.

That will allow ETAP teams to work with contractors to establish firm costs prior to any development decisions and allow BP to form a risk/reward alliance.

Contract awards covered design and project management to Brown & Root Ltd., Aberdeen; fabrication to AMEC Process & Energy Ltd., Wallsend, U.K., Trafalgar House Offshore Holdings Ltd., London, Consafe Engineering (U.K.) Ltd., Aberdeen, and Belleli SpA, Mantova, Italy; pipelay to European Marine Contractors Ltd., Kingston-upon-Thames, U.K., and Coflexip Stena Offshore SA, Paris; subsea installation to Coflexip Stena; and transportation and installation to Heeremac VOF, Leiden, Netherlands.

BP is equal partner with operator Texaco Ltd. in a recent plan to develop Erskine field in Block 23/26a, which lies near Machar.

BP said Erskine development had never been considered under the ETAP plan because Erskine is a high temperature/high pressure reservoir requiring special platform technology.

Erskine holds estimated reserves of 330 bcf of gas and 75 million bbl of condensate. It will be developed using an unmanned platform tied back to Amoco's Lomond platform, with gas export via CATS and liquids export through Forties.

SCHIEHALLION FIELD

BP disclosed further details to develop Schiehallion field in U.K.'s West of Shetland offshore hotspot (OGJ, June 19, p. 26).

Colin Maclean, manager of programs for BP Exploration, said Schiehallion development, which will involve a production and storage ship, will cost 750 million-1 billion ($1.2-1.6 billion).

Schiehallion field, which holds reserves estimated at 250-500 million bbl of oil, is to begin production in late 1997.

"The last of BP's old style platform developments, which was Magnus, is now producing 120,000 b/d,11 Maclean said. 'With Schiehallion we will be surpassing this."

The tender proposal for the Schiehallion production ship anticipates capacity to produce and store as much as 225,000 b/d of oil to a maximum 970,000 bbl cargo. Gas treatment capacity is to be 400 MMcfd.

An extended well test is under way in Schiehallion, with a semisubmersible rig producing 20,000 b/d of oil into a shuttle tanker.

CAISTER/MURDOCH

The new platform will allow Conoco to handle third party gas processing in addition to handling as much as 300 MMcfd of gas from Caister and Murdoch fields, which went on production in October 1993.

The new platform will be a four legged steel structure housing two 38,000 hp compressor modules with room to add a second compression unit. It will be installed in summer 1996, 40 m southwest of the Murdoch platform and linked by a bridge.

Conoco said the new capacity will enable the system to handle gas from Shell U.K. Exploration & Production's Schooner field when it goes on stream in second half 1996.

Conoco also agreed in principle with Shell to transport gas from its nearby Ketch prospect. Other potential customers are said to be Conoco's Boulton discovery and the Hunter dis- covery operated by Total Oil Marine plc, Conoco's partner in Caister/Murdoch development.