The first oil field found in the Irish Sea may be substantially bigger than believed at first.
An independent evaluation of Douglas field, discovered by Hamilton Bros. Oil & Gas in Block 110/13 off the northwest coast of England, shows the field could hold recoverable reserves of 176 million bbl.
The study, conducted by Simon-ERC, also estimated gas reserves in Hamilton and North Hamilton fields on the same block at 760 bcf.
Hamilton Bros., a subsidiary of BHP Petroleum, has sold the gas reserves to PowerGen plc to fuel a new power station in the area. A development project to start gas production in 1994 is moving ahead.
Oil and gas reserves on the block will be developed separately.
TRANSPORTATION OPTIONS
Hamilton Bros. is assessing a number of options to transport 30,000-40,000 b/d of oil from an offshore production complex that would go on stream after the gas fields. Total spending to produce oil and gas will be about 1 billion ($1.81 billion).
The most direct transportation method would be a 20 mile, 16 in. line to an idle coal mine site at Point of Ayr, where Hamilton Bros. also plans to land gas from Hamilton and North Hamilton fields. The terminal would be within easy oil pipeline reach of Shell U.K. Ltd.'s Stanlow refinery.
Offshore loading of oil has not been ruled out, and there also is a possibility of building a terminal on the Mersey estuary near Liverpool.
Hamilton Bros.' initial plans for offshore gas production on Block 110/13 were limited by Department of Transport concern about the density of shipping in the area, which led to a requirement for a single platform development.
Hamilton Bros. has been in detailed talks with the ministry and is likely to win approval for a central production complex in Hamilton with a satellite drilling platform in North Hamilton.
Discoveries on Block 110/13 have heightened industry interest in the shallow water area off Liverpool and Birkenhead. Hamilton Bros. recently was awarded Block 110/15 near the coast. Drilling is expected to start next year. Hamilton Bros.' partners in the project are Ultramar Exploration Ltd. and Monument Oil & Gas plc.
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