Petrofac, the international oil & gas facilities service provider, is pleased to provide the following update on the status of the Don Development, of which it is the Operator. The development consists of subsea wells located in the West Don and Don Southwest (Don SW) fields, tied-back to the floating production facility (FPF), the Northern Producer.
West Don Field (Petrofac 27.7%)
The drilling and tie-back operations of two production wells and one water injection well have been completed successfully. One production well has been on-stream since 28 April and has recently been producing at gross rates of around 6,000 barrels per day (bpd) without gas lift. Production from the second well commenced on Friday 7 August. Water injection is expected to start-up within the next few days.
Don Southwest Field (Petrofac 60.0%)
The drilling operations of two production wells and two water injection wells have been completed successfully. Both production wells have also been tied-back. One production well has been on-stream since 1 July and has stabilised at gross production rates of approximately 12,000 to 14,000 bpd over the last month. The second production well has been tied-in, however a further intervention is required to remove a suspected completion blockage prior to bringing it on-stream. The two water injection wells will be tied-back during October. Water injection is expected to start shortly thereafter.
During the drilling of the Don SW water injection wells, Petrofac took advantage of drilling two cost-effective pilot holes into adjacent reservoir structures, both of which discovered oil. One of the pilot holes was drilled into an area known as the “Horst”, a structural high between Areas 5 and 6. This area has excellent reservoir quality with high oil saturations and development of the Horst is now likely to take precedence over Area 6. The discovery of the Horst along with the recently discovered ‘H’ Panel are expected to be exploited during further stages of development of the field.
Performance and Outlook
Oil export is currently being performed through the use of shuttle tankers, which connect to an offshore loading system. Two tanker cargoes have so far been sold, with just over 1 million barrels of oil having been produced to date from the combined fields. This mode of oil export is expected to continue until early 2010, when a permanent oil export route will become available over the Thistle platform.
Full commissioning of the Northern Producer FPF is nearing completion. As the plant has stabilised, oil production has recently climbed to approximately 20,000 bpd, consisting of the combined output from one well on each field.
Petrofac now expects that gross oil production this year will amount to between 3 million and 5 million barrels. The range in this estimate accounts for potential weather-related interruption to remaining well tie-back activities and offshore tanker-loading, which could be quite significant during the winter months.
Petrofac expects to provide further guidance as to the performance of the Don Development during the fourth quarter of 2009, once all production and water injection wells are on-stream, and their performance can be properly assimilated.