Page 15 - EurOil Week 24 2022

EurOil PROJECTS & COMPANIES EurOil

Orcadian files plan for low-

emitting UK field

UK ORCADIAN Energy has filed a draft field to discussions between Orcadian and the North
development plan for the Pilot oilfield in the Sea Transition Authority over the coming
Orcadian said the UK North Sea with the North Sea Transition months, but it cannot be approved until the asso-
UK windfall tax that Authority, the company reported on June 13. ciated development finance has been arranged,
provides investment Under the plan, the field will be developed and finalising a farm-out deal will be a key part
incentives radically using a floating production storage and offload- of that progress.
improved the ing (FPSO) vessel and a pair of wellhead plat- Orcadian said that the UK’s recent announce-
economics of a farm-in forms, with power provided by a floating wind ment of a windfall tax on the North Sea oil and
deal. turbine to reduce project emissions. It will com- gas industry’s profits radically improved the eco-
prise 34 wells. nomics of a farm-in deal. The tax measure also
Orcadian also said it had launched a struc- provided investment allowances to encourage
tured farm-out process for the field, which oil and gas companies to reinvest their profits to
is located at North Sea licence P2244 Block support the economy, jobs and the UK’s energy
21/27a, operated by the company with a 100% security.
interest. It is the largest oilfield in Orcadian’s “Submission of the draft FDP is a further
portfolio. important milestone for the Pilot development
Emissions at the Pilot oilfield are expected to and highlights the maturity of the project,” Orca-
be about an eighth of the 2020 North Sea aver- dian CEO Steve Brown said. “Our focus on min-
age, and less than half of the lowest emitting oil imising emissions means that the project will be
facility currently in operation on the UK Conti- especially attractive to companies that wish to
nental Shelf (UKCS), Orcadian said. On a global drive down their emissions intensity whilst the
basis, this puts the field on the low end of the introduction of the investment allowances as
lowest-emitting 5% of global oil production, it part of the Energy Profits Levy will surely incen-
said. tivise operators to double down on investing in
The draft development plan will be subject domestic energy security.” ™

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