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Update on UKCS Field Development Projects - Intsok

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<strong>Field</strong> Kew<br />

Area Southern North Sea<br />

Operator Centrica<br />

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

Transport c<strong>on</strong>cept 3km pipeline to Chiswick or 14km pipeline to Markham?<br />

Start-up Q4 2011<br />

Comments: Centrica, as Venture has now become, plans to develop the Kew gas field<br />

following a successful appraisal well in 2009 – project sancti<strong>on</strong> is scheduled for this year and<br />

start-up could be achieved by late 2011. Its base-case soluti<strong>on</strong> is a single subsea well. This<br />

may be tied back either to the nearby Chiswick platform or the Markham field centre in the<br />

Dutch sector – previously there were doubts that Chiswick, which is itself tied back to<br />

Markham, would have sufficient export capacity.<br />

<strong>Field</strong> Kraken<br />

Area Northern North Sea<br />

Operator Nautical<br />

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

Transport c<strong>on</strong>cept Offshore loading<br />

Start-up 2012/13<br />

Comments: Nautical aims to select the c<strong>on</strong>cept for the development of the Kraken heavy oil<br />

field and submit a development plan by year-end following an appraisal well and an explorati<strong>on</strong><br />

well this summer. These wells will be drilled from the same tophole by semisub Ocean Nomad<br />

under the management of SPD. AGR and Senergy are assisting with c<strong>on</strong>cept evaluati<strong>on</strong>.<br />

<strong>Development</strong> will be phased, with six wells initially to give producti<strong>on</strong> of 30,000b/d. These will<br />

be tied back either directly to an FPSO or to a fixed drilling/wellhead platform combined with an<br />

FPSO for processing. In either case export will be through offshore loading. Downhole pumps<br />

will be required. A CSEM – c<strong>on</strong>trolled source electromagnetic – survey was run over the field<br />

by OHM last autumn. An appraisal well in 2007 showed that, at 18ºAPI, the crude is<br />

substantially lighter than expected. A sec<strong>on</strong>d appraisal in 2008 failed to find additi<strong>on</strong>al<br />

reserves. Nautical believes it can achieve the 30m bbl of recoverables which would make<br />

development ec<strong>on</strong>omic – oil in place is estimated at 370m-1.2 billi<strong>on</strong> bbl. The value of the<br />

asset has been substantially enhanced by tax advantages offered in the 2009 budget, the<br />

company said.<br />

www.intsok.com<br />

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