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Update on UKCS Field Development Projects - Intsok

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<strong>Field</strong> Cheviot<br />

Area Northern North Sea<br />

Operator ATP<br />

<strong>Development</strong> c<strong>on</strong>cept Semi-submersible drilling, producti<strong>on</strong> and storage platform<br />

Transport c<strong>on</strong>cept Offshore loading + gas export pipeline<br />

Start-up 2012<br />

Comments: In 2008 ATP submitted a draft plan for redeveloping Cheviot. However, the<br />

envir<strong>on</strong>mental statement will <strong>on</strong>ly be issued when an export route for the gas has been<br />

negotiated – hopefully by mid year, ATP said in Apr. Start-up is scheduled for 2012. ATP will<br />

use Moss Maritime’s Octobuoy c<strong>on</strong>cept, a semi-submersible platform with drilling and storage<br />

facilities. Producti<strong>on</strong> capacity will be 25,000 b/d of oil and 50 MMcf/d of gas. Storage capacity,<br />

which is required as the crude is too acidic to be transported by pipeline and will be exported<br />

by shuttle tanker, will be 200,000 bbl. There will be an amine unit for CO2 and H2S removal.<br />

The installed cost of the platform is $600m. Hull c<strong>on</strong>structi<strong>on</strong> at the Cosco yard in China is<br />

50% complete and <strong>on</strong> track for completi<strong>on</strong> in 2011, ATP reported in Feb. Dockwise has been<br />

c<strong>on</strong>tracted to transport the hull to the North Sea. In Oct ATP reported that it had agreed a deal<br />

with Cosco to defer $99m in c<strong>on</strong>structi<strong>on</strong> costs for the hull. Topsides c<strong>on</strong>structi<strong>on</strong> is due to<br />

start this year. Twelve to 15 horiz<strong>on</strong>tal and high-angle wells will be required. Reserves,<br />

including the small nearby Peter discovery which will be included in the development, are<br />

estimated at 22.7m bbl and 113 bcf. Cheviot was formerly known as Emerald.<br />

<strong>Field</strong> Christian/Bligh/Selkirk<br />

Area Central North Sea<br />

Operator Centrica<br />

<strong>Development</strong> c<strong>on</strong>cept Subsea<br />

Transport c<strong>on</strong>cept Pipelines: 5 km Christian/Bligh to Mallard, 25 km Selkirk to Bligh<br />

Start-up 2013/14<br />

Comments: The next development in the greater Kittiwake area – <strong>on</strong>e of the Venture assets<br />

acquired last year by Centrica – is likely to be a joint project involving three HP/HT fields -<br />

Christian, Bligh and Selkirk. Implementati<strong>on</strong>, however, could be phased. According to Centrica<br />

the project is unlikely to be sancti<strong>on</strong>ed for a year or two. An appraisal/development well <strong>on</strong><br />

Christian is planned for this year – it will be extended to explore the underlying Christian Deep<br />

prospect and also clarify whether part of Bligh underlies Christian. The three fields will be<br />

developed with subsea facilities - Christian and Bligh will be tied into the Mallard pipeline, while<br />

Selkirk, which is remotely located, will be tied back to Bligh. The fields may be am<strong>on</strong>g the eight<br />

HP/HT fields which stand to benefit from tax c<strong>on</strong>cessi<strong>on</strong>s offered in the pre-budget report in<br />

Dec.<br />

www.intsok.com<br />

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