Norwegian oil major Statoil has decided to postpone the Bressay project development, located on the UK continental shelf, due to low oil price environment that is, according to Statoil, “likely to persist over the next one to two years”.
The Norwegian company became the operator of the Bressay field in 2007 and it holds 81.625% interest, while the remaining 18.375% interest is held by Shell.
After several media reports saying that Statoil is postponing the development of Bressay field, Offshore Energy Today reached out to the Norwegian company seeking confirmation of these reports.
In an e-mail to Offshore Energy Today, Statoil spokesperson said: “Statoil and partner Shell have for many years worked hard to find a profitable development solution for the challenging Bressay asset. We have made significant progress through innovative solutions, and achieved substantial improvements in the business case, compared to earlier development concepts.
“However, in the context of the price and market environment likely to persist over the next one to two years, these improvements are not sufficient to proceed with the project at this time. Statoil and partner Shell have therefore decided to halt the current concept selection process.”
Statoil is the operator of two fields on the UKCS, Bressay and Mariner, with Mariner set for first oil in the second half of 2018.
The spokesperson added: “Statoil remains strongly committed to the UK Continental Shelf. The Mariner field development continues, and we are actively pursuing opportunities to increase value creation from the Mariner area.”
The Bressay heavy oil field was first discovered in 1976, but a combination of technical and commercial challenges has resulted in the long period to mature the discovery to development.
The Bressay discovery stretches over four licences. One of them, P920, was due to expire in July 2014 and is now extended to December 2016.
Recoverable reserves in Bressay are estimated at 100-300 million barrels of oil.
Statoil recently dropped its previous platform solution plans for the Snorre 2040 development, in the Norwegian North Sea, deciding in favor of a subsea solution as a possible development concept. The company said that, through the work on the subsea solution, the level of costs had been significantly reduced.
Offshore Energy Today Staff
Follow Offshore Energy Today
Posted on March 4, 2016 with tags Bressay, Mariner, North Sea, Statoil, UK.
Mariner is the first field to be developed from the $9.6 billion capital expenditureMariner & Bressay project located in the UK North Sea
Because the offshore ultra heavy crude oil is one of the most challenging exploration & production of the Oil&Gas sector, Statoil decided to proceed step by step. Mariner will go first and Bressay will follow one year behind. All the decisions made for Mariner will apply for Bressay.
In Mariner Statoil owns 61.5%, ENI 28.9% and Nautica Petroleum 6%.
Ultra heavy crude fields require pioneering technology in order to be developed that Statoil experienced successfully in the development of the Grane field in Norway and the Peregrino field in Brazil.
Because of the low well flow rates and early water break-through there is a need for many wells, artificial lift, and a process designed to handle large liquid rates and oil-water emulsions.
A total of 145 reservoir targets for production or injection are planned for Mariner. While the number of well slots at the platform is less, this will be solved through use of multi-branch technology, sidetracks and reuse of slots.
To meet with the requirements of the ultra heavy crude oil, Statoil designed the Marineroffshore platform project based on a:
– Production, drilling and quarter (PDQ) platform based on a steel jacket
– Floating storage unit (FSU), to be normally unmanned operated to store the diluent required to help the ultra heavy crude oil fluidity and the oil/water separation process.
The pumping operations will use a combination of 21 electric submersible pumps (ESP) in the down-hole of the wells and 28 water injection pumps on the up-hole to increase the well pressure.
Aker Solutions is actually performing the Front End Engineering and Design (FEED) of the 26,000 t topsides in order to treat 320,000b/d liquids including 80,000 b/d crude oil.
The selected Engineering companies in competition for the Engineering Procurement & Construction (EPC) contracts are the following:
– Kvaerner with Heerema Fabrication Group
– Daewoo Shipbuilding & Marine Engineering with CB&I
– Hyundai Heavy Industries with WorleyParsons
– Samsung Heavy Industries with KBR
Statoil expects to float the calls for tenders for the EPC contracts on mid 2012 for a final investment decision on year end.
The deck construction should start in 2014, so that Mariner full completion and operation is scheduled in late 2016.
For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer
Tags: Aker Solutions, artificial lift, Brazil, Bressay, capital expenditure, CB&I, completion, crude oil, Daewoo Shipbuilding & Marine Engineering, electric submersible pump, Engineering companies, Engineering Procurement & Construction, ENI, EPC, ESP, ESP pump, Exploration & Production, FEED, Floating storage unit, front end engineering and design, FSU, Grane, Heerema Fabrication Group, Hyundai Heavy Industries, jacket, KBR, Kvaerner, Mariner, Mariner & Bressay, Nautica Petroleum, Norway, offshore, offshore platform, Offshore technology, ogp projects, OGP projects pursuit, Oil & Gas and Petrochemical, Oil & Gas and Petrochemical capital expenditures, Oil & Gas and Petrochemical Project, Oil news, oil/water separation, Oil&Gas, PDQ platform, Peregrino, Petrochemical projects EPC contracts, Production drilling and quarter platform, Project Feasibility study, Samsung Heavy Industries, Statoil, topsides, UK North Sea, ultra heavy crude oil, upstream, water injection pump, wells, WorleyParsons
Posted in One day - One Project | Leave a comment