So Ithaca is pulling the plug on the Beatrice field, with production scheduled to end this year by which time approaching 200million barrels of high grade oil will have been produced.
Modest in size, Beatrice has turned out to be one of the North Sea’s remarkable survivors with quite a history.
Beatrice was discovered by Mesa Petroleum Co in September 1976. Mesa was the creation of the remarkable American oilman / investor T Boone Picken whose second wife’s name was Beatrice.
The field is located in the Inner Moray Firth within sight of land. It lies 22km (14 miles) offshore in just 49m (160ft) of water.
In August 1976, well 11/30-1, the seventh wildcat attempted in that area, struck oil at about 1,830m (6,000ft) at time when most companies had written off the inner firth as a significant oil province In its own right.
That well delivered light, sweet crude, albeit somewhat waxy. Four more wells, three productive and one dry, then delineated the field in which there was an estimated 476million barrels of oil in place.
Production started in September 1981 based on a mini-platform complex linked to a terminal at Nigg on the Cromarty Firth.
However, by 1996, it was clear that by then long-time operator BP no longer considered Beatrice, then one of a number of mature assets known as the MAST fields, worthwhile.
On March 14 that year the company announced that it was considering the sale of its interests in Beatrice, Buchan, Clyde and Thistle.
Two years earlier BP had said that these fields had little value, but the improvement in performance has been so marked that a number of companies had expressed interest in them.
BP said at the time: “As these mature fields still offer significant upside potential, the next logical step is to establish whether there are others willing to invest in their futures, and further extend field life.
“If there are, then this should bode well for the future. Our overriding concern throughout the sale process is to ensure staff are treated properly and that we maintain our very high standards of safety and environmental performance.”
In the event, Canadian company Talisman, itself heritage BP, bought three of the four MAST assets and set about their rejuvenation with considerable success, though there were a few problems along the way, including having to carry our major renovation of the export pipeline to Nigg.
However, by around 2005, Talisman started to consider whether continuing with Beatrice was worthwhile as production declined. In 2007 the decision was taken to try and sell the elderly field if possible.
Along came Ithaca, another Canadian company, and bought out Talisman, but leaving ownership of the infrastructure in the latter’s hands because of decommissioning relief issues. It is one of a number of examples of similar creative thinking regarding decommissioning of late life assets.
By the end of 2007, Beatrice was producing just 1,800 barrels of oil per day, but had to that point delivered a grand total of over 169million barrels.
Much as Beatrice had been important to Talisman as it started to build a presence in the North Sea, so too has it proved strategically important to Ithaca in its similar quest. The discovery of the nearby Jacky field was hugely important as a catalyst to Ithaca’s decision.
But now, not even Ithaca can squeeze out much more oil; the time has almost come to shut the old lady down with dignity and probably for good. By any stretch of the North Sea imagination, Beatrice has been a great success for the UK… and for Scotland.
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