10 January 2008
Petrofac secures Northern Producer and submits field development plans for Don Area Developments
Petrofac, the international oil & gas facilities service provider, announces that its Energy Developments division has signed an agreement, as operator, on behalf of itself and its co-venturers, with Sea Production Limited, a wholly owned subsidiary of Northern Offshore Limited, for the provision of the Northern Producer floating production facility. The Northern Producer will receive and process production from the Don Southwest (Don SW) and West Don fields in the North Sea, before export via offshore tanker or nearby infrastructure.
The Northern Producer has a capacity of 55,000 barrels of oil per day and associated gas, water injection and export processing facilities. Modifications will be carried out in 2008 to extend the life of the vessel. The vessel will be deployed between West Don and Don SW, with first oil expected in 2009.
Field development programmes for both fields have been submitted to the department of Business Enterprise & Regulatory Reform. Approval is expected to be received during the first half of 2008, pending environmental consultation.
Petrofac has contracted the John Shaw semi-submersible drilling rig for a seven well drilling programme on the Don SW and West Don fields. It is expected that the rig will come on contract towards the end of the first half of 2008 and complete the programme by the end of the first quarter of 2009.
The total cost of the Don SW and West Don developments are estimated at circa £360 million (gross).
Bill Dunnett, executive vice president of Petrofac Energy Developments, said: “Petrofac's knowledge of the Northern Producer made this a compelling solution when combined with the innovative leasing arrangement which allows costs to vary with oil price and throughput, aligning all parties to maximise production. Securing the John Shaw rig for the development also gives us confidence in our project schedule and capital costs.”
Amjad Bseisu, chief executive of Petrofac Energy Developments, added: “This agreement has enabled Petrofac and its partners to secure a fast track and standalone solution utilising the Northern Producer. The joint Don SW and West Don development is another example of Petrofac creating value from fallow oil discoveries by delivering a low cost fast track solution.”