Page 11 - Euroil Week 13 2020

EurOil PROJECTS & COMPANIES EurOil
Spirit boosts output with new North Sea wells
UK
The Anglo-German oil firm has made progress at its core projects.
ANGLO-GERMAN oil firm Spirit Energy has extended the production life of the Chest- nut oilfield in the UK North Sea by three years after sinking a new development well, it said on March 27.
Spirit and its South Korean partner Dana Petroleum have invested GBP56mn ($70mn) in the well, brought on stream on March 19, as well as signing a contract for Teekay’s Hummingbird Spirit vessel. The investment has unlocked an extra 2.5mn barrels of oil, it said.
Chestnut, situated 200 km north-east of Aberdeen, was launched more than a decade ago. It was initially expected to produce for only two years, but has continued to flow. Spirit has an 83% stake in the field, while Dana holds 17%. The pair intend to spend GBP140mn ($174mn) on capital and operating expenditure at the site over the next three years.
Spirit also reported that a new well at its Chiswick field had added an extra 15mn cubic feet (425,000 cubic metres) per day to the project’s output since starting up last month. Chiswick, some 120 km off Norfolk and strad- dling the UK-Dutch maritime border, has been flowing gas since 2007.
The new well has raised overall daily output in the Greater Markham Area (GMA) to 110mn cubic feet (3.1mn cubic metres), Spirit said, which is enough to heat almost 950,000 homes. It
was finished two months ahead of schedule and will play a role in extending the life of the GMA hub until 2028.
Spirit added another well at Chiswick in October last year.
“The results from the new well at Chiswick exceeded our expectations and will provide us with valuable data to identify further drilling tar- gets in the area,” Spirit’s vice-president for techni- cal and operated assets commented. “At the same time, the work our teams have done alongside our partner Dana Petroleum and our supply chain colleagues, notably Teekay Corporation and Altera Infrastructure, to maximise the poten- tial of the Chestnut field has been exceptional and is making this field a notable success story.”
“The industry faces unprecedented chal- lenges but, taken together, the additional gas and oil from Chiswick and Chestnut provide a boost to production from two UK fields at a time when the secure supply of energy is critical,” he concluded.
Spirit announced at the start of March that it had struck a deal to divest two non-core Dan- ish assets to UK petrochemicals group Ineos, to hone its focus on Chestnut, Chiswick and other core fields. The company is a joint ven- ture between the UK’s Centrica and Germany’s Stadtwerke Muenchen, but Centrica is looking to sell its majority share. ™
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