Repsol to get after new North Cayley project in UK

Repsol Resources UK has set out plans to sanction new North Sea production in the UK set for 2025.

The firm aims to mobilise a “heavy duty jack up” rig at North Cayley in the first quarter of 2025 with first gas expected in the third quarter that year.

At Offshore Energies UK’s (OEUK) Share Fair at Aberdeen’s P&J Live, Repsol Resources said its North Cayley development is expected to be green-lit in the third quarter of this year as it hunts for a rig.

The currently unsanctioned project expects to get the green light later this year.

North Cayley is part of the phased Montrose redevelopment on the western edge of the Forties Montrose High area and an extension of the main Cayley field which came online in 2017.

Following rig mobilisation at the start of next year, Repsol forecasts first gas from North Cayley in the third quarter of 2025 which will be tied back to the Montrose platform.

Engineering work at the development is set to kick off in the second quarter of 2025 and once production starts Repsol says the well will provide “incremental sales gas, platform fuel gas, start-up and lift gas.”

Topsides engineering at the site will be carried out by an existing hub contractor and well services will be conducted by firms with an existing master service agreement (MSA).

However, Rafael Marquez, supply chain senior manager at Repsol Resources UK told the Aberdeen event: “As we are going to the market for well services, potentially, we’ll be using also those new contracts.”

Ithaca Energy is a 41.03% partner on the project.

Resource estimates have not been disclosed.

Late last year the firm formerly known as Repsol Sinopec Resources UK rebranded after an eight-year arbitration case was closed with the former co-owner, China’s Sinopec.

Now as the sole owner of the UK firm, Repsol looks to instil its own operating ideology.

Mr Marquez explained: “The UK strategy now is really focussed on deploying the Repsol operating model.”

This involved maximising value from producing assets, addressing the “big challenge” of its decommissioning liabilities and focusing on the energy transition “trying to capture any potential opportunities in this area.”

New wells to be drilled at Piper

© Supplied by Repsol Sinopec

In addition to the work planned at North Cayley, Sinopec also shared that it plans to drill new wells at its Piper field.

The firm aims to drill three additional production wells at the site plus an additional contingency well at Piper Bravo.

“This will be processed through our platform Piper Bravo and will be transported to our Flota terminal,” Mr Marquez added.

“Here we do not need any new subsea facilities and we target that first oil around Q1 2025.”

Pre-sanction long lead orders, including consignment materials, relating to this project have already been placed, Repsol shared.

Piper Bravo was installed by Occidental Petroleum in 1992 as a replacement for Piper Alpha, which tragically exploded in 1988.