Dana Petroleum revealed yesterday that it would soon begin drilling development wells at its Western Isles project; three months ahead of schedule.
First oil from the £1billion scheme involving the Harris and Barra fields in the northern North Sea is anticipated in late 2015.
The fields are estimated to contain recoverable oil reserves of more than 45million barrels, and daily production is expected to reach up to 40,000 barrels.
Western Isles is due to be in production for 15 years.
A Dana spokesman said: “This is a transformational project for Dana Petroleum and a significant part of our growth strategy.
“In just six months, we have achieved a number of key milestones. In February, construction started on our FPSO (floating production vessel) in China, and, in May, the keel was laid. In June, our first subsea tree moved to our storage facility ready for deployment.
“We are now beginning drilling operations in August 2013; three months earlier than originally planned.”
Aberdeen-based Dana has a 77% stake in the Western Isles development and Japanese exploration and production company Cieco holds the remaining 23%.
The project is expected to lead to up to 200 jobs, including about 20 additional posts at Dana in Aberdeen.
Dana – owned by the Korea National Oil Corporation – announced its annual results for 2012 yesterday, which its boss described as another year of solid progress.
Financial highlights included revenue rising by 0.4% to £1.09billion. However, pre-tax profits were down by 34% to £288.3million, while daily production averaged 57,284 barrels compared with 57,616 previously.
The spokesman said: “Safety is a core value for Dana. In 2012, we took the decision to shut in production in a number of locations so we could carry out safety and operational integrity work. This, combined with lower-than-expected production from our non-operated assets, contributed to flat production which impacted our profits.”
Chief executive Marcus Richards said: “2012 was another year of solid progress for Dana with strong revenue and production underpinned by a diverse asset base. We were granted sanction for the Western Isles project in the UK North Sea at the end of the year. This project is extremely important for Dana as we aim to significantly boost our production over the next five years. We continue to invest in long-term growth.
“Our priorities remain the same as last year; to deliver value for Korea National Oil Corporation by maintaining safe, reliable and profitable operations and to deliver production growth. We have built solid foundations to grow our business in a sustainable, long-term way and to become a leading international oil and gas company operating in Europe, Africa and the Middle East.”
