Ithaca Energy said yesterday it had started drilling for its biggest UK North Sea project.
The energy operator added that its four-well development drilling campaign on the Stella field – using the Ensco 100 heavy-duty jackup rig – would take up to a year to complete.
Advanced Drilling Technology International, part of global contractor Transocean, is overseeing the operation.
Production in the Greater Stella Area (GSA) is due to begin next year and output is expected to hit 30,000 barrels of oil per day.
GSA, which will cost about £630million to develop, could hold up to 40million recoverable barrels of oil equivalent.
In addition to Stella, the area includes Harrier, Hurricane and Helios.
The central North Sea fields, 147 miles south-east of Peterhead, will be developed through Petrofac’s FPF-1 floating production facility.
Ithaca took on operatorship of the North Sea block containing Stella and Harrier in 2009 and within months drilled an appraisal well at the discovery.
The Canadian company holds a 54.66% stake in GSA, while partners Dyas and Petrofac Energy Developments hold 25.34% and 20% respectively. Petrofac took on its share from Ithaca in return for an 80% stake in the £27million FPF-1.
On Monday, Ithaca announced it had offloaded stakes in two prospects in UK waters as part of plans to reduce its exploration costs.
The company gave up a 25% share of the Handcross find west of Shetland to Edison, leaving it with a 45% interest, in return for Edison paying some of Ithaca’s share of the exploration costs.
Ithaca has also agreed a deal with Shell to farm out half of a central North Sea licence which Valiant Petroleum secured in the UK Government’s latest licensing round.
Valiant was acquired by Ithaca for £203million earlier this year.
Ithaca’s North Sea portfolio also includes the £180million Athena development in the Moray Firth, which started output last year.
