Kraken oil field
First oil has been delivered from the Kraken oil field, one of the largest developments in the North Sea in recent decades.
The field is estimated to contain 128 million barrels of oil equivalent (MMboe) of gross reserves, making it one of the largest new oil fields to come on-stream in the North Sea since Buzzard in 2001. Gross peak oil production is expected to be approximately 50,000 barrels of oil per day (bpd).
Independent developer EnQuest confirmed that, during the initial ramp-up period, 13 wells have been drilled and completed to date, comprising seven producers and six injectors, and that these will be brought online in a phased manner “to maximise long-term productivity and value.”
“EnQuest is delighted to confirm that first oil has been achieved on the Kraken development, delivered on schedule and under budget,” said EnQuest Chief Executive Officer Amjad Bseisu. “Drill centres 1 and 2 are fully complete and work continues on Drill Centre 3; as a result, further production capacity will come online into 2018 as these further wells are put on-stream.”
The project, which was estimated to cost about $3.2 billion, was brought in well under budget at $2.5 billion, thanks in part to the collapse in oil prices in recent years. EnQuest’s Head of Major Projects Richard Hall added: “Our approach of rigorous planning, simplification of specifications and clarity in execution methodology has enabled us successfully to deliver this highly complex project.”
The announcement was welcomed by the U.K. government, with Business and Energy Secretary Greg Clark commenting: “This is a landmark project for EnQuest and the U.K. oil and gas sector as one of the largest new oil fields to come on-stream in the North Sea in a decade. This has been made possible through significant U.K. government support to encourage investments of this type in the North Sea, supporting thousands of highly skilled jobs.”
U.K. Oil & Gas Authority Chief Executive Dr. Andy Samuel added: “As one of the most significant oil field projects in the U.K. Continental Shelf, successful production from Kraken is positive news for the whole basin. It has the potential to open up additional heavy oil opportunities in the northern North Sea, with other developments in the pipeline. It’s particularly pleasing to see a project delivered under budget, having clearly benefitted from a strong partnership between operator and key service providers.”
Source: Industrial Info Resources – 29 June 2017