NEWS

BP, Shell slate big U.K. North Sea development

BP Exploration Co. Ltd. and Shell U.K. Exploration & Production have begun work on a 1.6 billion ($2.4 billion) development of seven U.K. North Sea fields known as the Eastern Trough Area Project (ETAP).

Total estimated reserves for the fields are 400 million bbl of oil, 35 million bbl of condensate, and 1.1 tcf of gas. Fields involved are BP-operated Marnock, Mungo, Monan, and Machar and Shell's Heron, Egret, and Skua.

Elsewhere off Northwest Europe:

In the Norwegian North Sea, Norway's Den norske stats oljeselskap AS let a 1.2 billion kroner ($185 million) contract to Kvaerner Installasjon AS, Stavanger, for modification of Gullfaks A platform in Block 34/10.
Clyde Petroleum Exploratie BV of The Hague secured Netherlands government approval to develop three small gas fields in the Dutch North Sea with novel, unmanned, reusable, jack up platforms.
BHP Petroleum Ltd. began gas production from North Hamilton field, part of its 1.1 billion ($1.7 billion) Liverpool Bay development in the U.K. Irish Sea.

ETAP operations

A process platform and a utilities and quarters platform will form a central processing facility for BP-Shell's ETAP operations in Block 22/24a Marnock field. An unmanned satellite wellhead platform will be installed in Block 23/16a Mungo field.

Machar, Monan, Heron, Skua, and Egret fields will be developed using subsea manifolds tied back to the central processing facility. A total 30 wells are to be drilled, starting this summer.

First production is scheduled for the second half of 1998. ETAP oil flow is to peak at 210,000 b/d, while gas production is to average 360 MMcfd.

Last June, BP announced a series of design and engineering contracts for ETAP, way ahead of government approval (OGJ, Aug. 28, 1995, p. 50).

AMEC secured a contract to build the 14,000 metric ton topsides for the Marnock process platform at its Wallsend yard on the River Tyne. Construction is to start early this year.

Barmac, the joint venture company of Brown & Root Ltd. and McDermott International Inc., secured a 21 million ($31.5 million) contract to build the steel jacket and piling for the Marnock process platform, as well as piling for the Marnock quarters and Mungo wellhead platforms.

BP and Shell will operate their own fields during development, but BP will take over as operator when production begins.

BP, with a 53% interest, is the largest shareholder in the ETAP development agreement. Its partners are Shell U.K. Ltd. and Esso Exploration & Production U.K. Ltd. through their Shell Expro joint venture, Agip (U.K.) Ltd., Murphy Petroleum Ltd., BHP Petroleum Ltd., and Mitsubishi Oil Co. Ltd.

Gullfaks platform

Statoil's contract awarded to Kvaerner will form part of a planned 6.5 billion kroner ($1 billion) development plan for three satellites of Gullfaks fields, decided on late last year (OGJ, Jan. 1, p. 31).

South Gullfaks, Rimfaks, and Delta discoveries hold estimated reserves of 260 million bbl of oil. They will be developed using 23 wells tied back to Gullfaks A platform via seven subsea templates. First oil is due from the satellites in October 1998, with peak flow of 125,000 b/d timed to coincide with declining oil production from the main Gullfaks field.

Kvaerner said the engineering, procurement, construction, and installation contract will include modifying the Gullfaks A platform to take three new processing modules weighing 2,000 metric tons each.

Dutch gas fields

Clyde plans to develop P2-NE, P2-SE, and P6-South fields as satellites of the P6-A processing platform. They are to begin production in early 1997, mid-1997, and late 1996, respectively.

Estimated combined reserves for the three fields are 3 billion cu m of gas, and total development cost is expected to be DFl 205 million ($125 million).

David Taylor, Clyde's Netherlands exploration and development assets manager, said the jack up platforms are to be four legged structures designed to be secured by suction piles.

The surface area of the single deck is 40 by 36 m, on which processing modules will be installed. The three platforms for these fields will be able to produce 1.5 million cu m/day of gas and handle flow from four wells.

Taylor said, "The jack ups will be custom-built, suited to installation in 20-40 m of water, so they can be used virtually anywhere on the Dutch shelf.

"Within our licenses we have a number of candidates for development using these same platforms, and we are looking at using them for other license groups."

The jack ups are designed to be self-buoyant, so no crane barge will be required for installation. The jacking mechanism is removable. Only one will be needed for the three installations.

The platforms will be installed by jacking up the legs and welding them into position. When the platform is to be removed, the joint will be cut, and the structure can be moved to another field.

P2-NE and P2-SE fields are on Block P2a.

P2-NE will be developed using one vertical and one horizontal well, with gas exported from the jack up by a 10.7 km, 10 in. pipeline to P2-SE. P2-SE field in turn will be developed using two horizontal producers tied back to the jack up platform. Gas from both fields will be exported through a 27.5 km, 10 in. pipeline to P6-A platform.

Both P2 platforms will be controlled from the manned P6-A platform.

Clyde estimates development cost for the two fields at DFl 165 million ($100 million).

Development of P6-South field will involve reentry and dual recompletion in two reservoirs discovered with the P6-8 well. Gas from the P6-South platform will move through a 6.6 km, 6 in., flexible pipeline to the P6-B unmanned satellite platform and from there to P6-A.

P6-South field development is expected to cost DFl 40 million ($25 million).

Liverpool Bay

BHPO's Liverpool Bay development covers four fields: Douglas oil field, Hamilton and North Hamilton gas fields, and Lennox oil and gas field, with combined reserves amounting to 1.2 tcf of gas and 150 million bbl of oil.

Early production is used to commission systems and pipelines offshore and onshore and at the Powergen plc electricity generating plant at Connah's Quay before contract deliveries begin in mid-1996.

Gas will move ashore as fuel for power plants in North Wales, while oil will be stored in a tanker in the field for offloading into shuttle tankers (OGJ, Aug. 28, 1995, p. 60).

BHP expects to begin oil production from Douglas and Lennox fields in the next few weeks, while gas production from Hamilton field is expected early this year, and gas from Lennox is due in several years.