Centrica has started producing oil from the newly drilled Goosander Crestal well in the UK North Sea, the energy company confirmed yesterday.
Its upstream exploration and production division expects output from the well of up to 18,000 barrels of oil a day.
It will boost Centrica’s producing oil reserves by an estimated 3million-plus barrels, with the company also anticipating an extension to the remaining life of both Goosander and the Kittiwake platform through more efficient use of existing production facilities.
David Wilson, Centrica Energy regional director for the central and northern North Sea said: “We have safely delivered and brought on stream a fantastic well one year from project approval. This has been the culmination of many hours of focus and commitment from a great team across the business.”
Project director Chris Bird said “This is a great example of a project delivered safely, ahead of schedule and exceeding expectations in terms of oil production.”
The Goosander oil field, within the central North Sea production hub area Greater Kittiwake, was discovered by Dana and partners in 1998.
Kittiwake was due to be abandoned by its former owners – Dana and Venture Production – in 2005, when the area was producing less than 5,000 barrels per day.
Output was lifted above 15,000 barrels daily, meaning a potential operating life beyond 2020, thanks to a satellite field-development campaign and investment to modernise equipment.
First oil from Goosander was announced by Dana and Venture in August 2006.
Centrica acquired 50% ownership of Kittiwake through its £1.3billion acquisition of Venture in 2009. Dana still owns the other 50%. The area consists of five fields: Kittiwake, over which the platform is located; with Mallard, Gadwall, Goosander and Grouse as subsea satellite fields tied back by flow lines to Kittiwake.
Centrica, which owns Scottish Gas, is expected to run the gauntlet of public outrage today when it reveals big profits just weeks after announcing huge electricity and gas bill rises. Britain’s biggest energy supplier plans to lift gas and electricity prices by an average of 18% and 16% respectively from August 18.
Centrica said the increases were necessary to offset a 30% rise in wholesale gas prices since last winter.
Brokers expect profits for the six months to June 30 to come in about £1.3billion, although this is down on the £1.6billion seen a year earlier. Profits of £293million are forecast at British/Scottish Gas this time, down from £585million.