Page 14 - EurOil Week 35 2021

EurOil PROJECTS & COMPANIES EurOil

Spirit to decommission UK’s

Chestnut field

UK UK operator Spirit Energy plans to decommis- The timeframe for decommissioning will
sion the Chestnut oilfield off the coast of the UK depend on when production from the field
Chestnut was originally after 13 years of production, the company said ceases. When it drilled Chestnut’s final devel-
expected to flow oil for on August 30. opment well last year, Spirit said the field would
only two years. Chestnut, located in the central North Sea continue flowing until 2023. Gross investments
some 200 km east of Aberdeen, was initially in Chestnut’s final three years were to set to
expected to flow oil for only two years, But it reach GBP140mn ($174mn), according to the
is still producing oil via three wells, the last of company.
which was drilled last year. It was originally
expected to yield only 7mn barrels of crude but “Chestnut has been a key field in Spirit Ener-
has instead produced over 27mn. gy’s portfolio for many years and thanks to the
Spirit attributed the field’s longer-than-ex- excellent work of teams both on and offshore, it
pected production life to continued invest- has continued to perform above expectation,”
ment, additional wells and good production Spirit’s capital projects director, Mark Fother-
efficiency. Spirit, its field partner Dana Petro- ingham, commented. “The collaborative spirit
leum, and the owner of the floating produc- which characterised the production phase
tion storage and offloading (FPSO) stationed of Chestnut’s life will continue as we support
at Chestnut, Teekay, have now begun decom- Teekay in any repurposing opportunities for the
missioning preparations. vessel, as well as working with our supply chain
Under the proposed plan, which will be on an efficient campaign to plug and abandon
submitted to UK upstream regulator OGA, the the wells.”
FPSO will be removed and will be either reused UK energy group Centrica is the majority
or recycled. The risers will meanwhile be flushed, owner of Spirit, but it looking to sell the company
cleaned and taken back to shore. as part of a broader divestment programme.. ™

NEWS IN BRIEF

Jersey Oil & Gas delays the “Core GBA,” which includes JOG’s gas industry parties and potential third-party
funding providers (infrastructure funding
Buchan oil field and J2 and Verbier oil
Greater Buchan plan to discoveries. businesses),” JOG said.
Electrification Plan for Greater Buchan
The development is planned to be
complete electrification executed in three phases, with the first oil the GBA Development to be the first new
“We are excited by the potential for
from the first phase previously slated for Q4
studies 2025, the second phase in 2027, and the third development in the UKCS to be fully
powered by electricity and firmly believe
phase 3 in 2028.
Jersey Oil & Gas, a UK-based company that In a statement on August 31, JOG said it can play a regional electrification role
is working to build its Greater Buchan Area that FEED entry, together with previously in collaboration with other asset owners
oil production hub project in the UK North advised Final Investment Decision and first and producers. Such collaboration could
Sea said Tuesday it would delay the first oil milestone dates, would be “re-phased” to materially reduce capex and opex through
oil date to allow for regional electrification allow sufficient time for the incorporation shared investment, thereby further
studies to be completed, and their results of regional electrification studies in enhancing the economics of our planned
incorporated in the development plans. collaboration with other offshore operators/ GBA Development,” JOG said.
The GBA hub project JOG is working on owners into its FEED workflows. It did not Andrew Benitz, CEO of Jersey Oil &
is envisioned to serve as a hub through which say when these studies might be completed. Gas, commented: “Our GBA Development
oil discoveries made by several operators in “The company’s management maintains represents a major opportunity in the
the Greater Buchan Area in the UK North its view of the importance of acting in UK Central North Sea to extract locally
Sea would be developed. JOG has earlier this a responsible manner in pursuit of the sourced hydrocarbons profitably and at
year selected a development concept. industry’s sustainability goals and it is low-cost, with basin-leading low carbon
The concept envisions development therefore deemed essential for JOG to work emissions. The UK will continue to require
centered around a single, normally manned, collaboratively with all stakeholders in responsibly produced hydrocarbons to
integrated wellhead, production, utilities, order to deliver an optimum and sustainable support its planned energy transition for
and quarters platform, powered from shore, development solution to support the UK’s some time to come. We are determined to
to be located at the Buchan field. economy, as the UK progresses through its play as responsible a role in this as possible
The GBA development concept is based targeted energy transition. As such, JOG recognizing that industry underinvestment
on P50 Technically Recoverable Resource has furthered engagement in multi-party risks driving prices higher, thereby making
estimates of, in aggregate, 172 MMboe of conversations on the topic of electrification energy less affordable for consumers.”.
light sweet crude and associated gas within with the UK’s Oil and Gas Authority, oil and

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