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LNG-fuelled shuttle tankers it chartered for “The development of Wressle continues Denmark called on to end oil
operations in the North Sea. apace and first oil is anticipated during H2
The first tanker Eagle Blane is owned by 2020. When Wressle is commissioned and and gas search
Malaysian shipowner AET, while the second in production, it will result in an initial
vessel Rainbow Spirit belongs to Teekay’s constrained production anticipated to be Denmark should end all future oil and
Altera. 500 barrels of oil per day gross, adding gas exploration in the North Sea, an
Eagle Blane recently conducted its first production of 200 barrels of oil per day independent adviser to the government said
LNG bunkering in the port of Rotterdam net to Union Jack and transforming the on June 4, saying it would hurt Denmark’s
prior to heading to Amoyfjorden near company’s financial position.” ambition as a front-runner in the fight
Stavanger. Bramhill added: “We believe that when against climate change, Reuters reported.
Besides LNG, these two vessels also have commercial oil production at Wressle is Denmark has set one of the most
an oil vapor recovery plant to enable them established, it will provide Union Jack ambitious climate change targets in the
to collect and use liquefied volatile organic with meaningful cash revenues. After world and the adviser’s recommendation
compounds, LVOCs, from the cargo as fuel. taking operating costs into consideration, is crucial to the government’s pending
Equinor is now testing both of the vessels estimated net revenues are expected decision on whether to proceed with a
near Stavanger to check whether all systems propel Union Jack to a profitable revenue- previously announced North Sea oil and gas
are functioning properly. generating oil and gas production tender.
“For when placing large heavy vessels company.” “The credibility of Denmark as a pioneer
adjacent to giant oil platforms, it’s best to Union Jack is paying £500,000 (in climate change) can quickly erode if
be absolutely sure that, among other things, to Humber to acquire the Wressle we continue to expand our oil and gas
positioning systems are working properly”, stake and it will also take on a future activities,” the Danish Council on Climate
the Norwegian company said. contingent payment, of £1.04mn, to Change said in a report commissioned by
Equinor says the testing is exceeding all Calmar (appointees of Celtique Energie the government, according to Reuters.
of the company’s expectations, especially Petroleum Limited, the original vendors The government aims to give its decision
considering all restrictions on travel, in the acquisition by Humber) upon the in the autumn but declined to say whether
quarantine and obtaining equipment and establishment of commercial oil production. it would follow the council’s advice, citing a
parts due to the coronavirus pandemic. A 2.5% net profits interest (NPI) royalty need to weigh concerns against the potential
is also attached to the stake, following economic losses and security of supply.
Humber’s prior transaction with Celtique. “It is a complex balancing act and if
Denmark is to take international climate
Union Jack increases stake Petrofac hired for UK Acorn leadership, then we must show that the
green transition can go hand in hand with
in Wressle field financial responsibility,” said climate and
energy minister Dan Jorgensen.
London-listed Union Jack Oil is expanding CCS project Denmark is broadly seen as a pioneer
its control of the Wressle oilfield, signing a Petrofac’s Engineering and Production on climate change, with many of its peers
deal to acquire an additional 12.5% interest Services business will support Pale Blue closely following what the small Nordic
from Humber Oil & Gas for an initial Dot Energy on two projects in northeast state is doing to achieve its targets.
upfront payment of £500,000. Scotland involving carbon capture and “A Danish halt for further exploration in
The transaction will see the firm’s stake storage (CCS) and conversion of North Sea the North Sea could send a strong signal in
in the Lincolnshire onshore oil project gas to hydrogen. international climate politics and may even
increase to 40%. The company’s full work scope comprises encourage other countries to follow suit,”
Wressle is slated to achieve ‘first oil’ provision of project management systems the council said.
and begin production later this year, and and technical assistance during FEED for Denmark produced about 30.8mn
when that project milestone is reached it Acorn CCS, and concept select for Acorn barrels of oil and a little more than 3bn
will be transformational for Union Jack’s Hydrogen, both part of new developments cubic metres of gas in 2019. It is the second-
production and revenue profile. planned at the St Fergus gas terminal near biggest oil producer in the European Union
Production is anticipated at around 500 Peterhead. behind Britain but its output remains
barrels per day (bpd) of oil. The transaction Acorn CCS holds the first UK CO2 dwarfed by neighboring Norway.
will see Union Jack’s share of Wressle’s appraisal and storage license awarded by The Danish Energy Agency (DEA) said
reserves rise to over 1.24mn barrels. the Oil and Gas Authority, and is looking in February that it had received applications
“The terms of the Acquisition are to develop CO2 mitigation infrastructure from four companies - Ardent Oil, Lundin
compelling and this transaction is to help meet the Scottish and UK (LUPE.ST), MOL MOLB.BU and Total
significantly asset value accretive from governments’ Net Zero targets. (TOTF.PA) - in the so-called eighth
the outset, reaffirming Union Jack’s With the Acorn Hydrogen project, licensing round.
commitment to the development of Wressle natural gas from under the North Sea would
and will assist in delivering the company`s be reformed into clean hydrogen, with CO2
goal to become a mid-tier producer in the emissions safely mitigated through the
medium term,” David Bramhill, Union Jack Acorn CCS infrastructure.
chairman said in a statement.

P20 www. NEWSBASE .com Week 23 11•June•2020