Buchan start date pushed back as general election called

Jersey Oil and Gas (LON:JOG), a partner in the Buchan project, has confirmed that first oil will now come in 2027 following the call for a UK general election.

Production was originally tipped to kick off in the fourth quarter of 2026 but has now been pushed back to “late 2027.”

Earlier this year Serica completed its farm-in deal on the Buchan project, securing a 30% non-operated interest in the Greater Buchan Area (GBA) from Jersey Oil and Gas.

NEO Energy, operator of Buchan, owns a 50% stake while Jersey accounts for the remaining 20%.

Jersey shared in an update: “Following the announcement of an earlier than expected UK General Election in July 2024, the Buchan joint venture partners have assessed the implications and their plan for progressing the project. ”

The trio are still aiming to have a field development plan approved by the end of 2024 but it said that ” exact timing for achieving this key milestone and enabling project sanction” will be linked to “fiscal clarity from the next government”.

Jersey chief executive, Andrew Benitz, commented: “With a UK General Election now announced, we are hopeful that fiscal clarity will be forthcoming in short order so that the industry can continue to do what it does best, namely investing in major capital projects that deliver vital low carbon homegrown energy and highly skilled jobs.

“In the case of the Buchan field, we have a project that will deliver a meaningful contribution to the energy transition process through our electrification strategy, which helps facilitate investment in cutting-edge floating offshore wind.”

© Supplied by NEO Energy

The work programme required to enable project sanction is said to be making “good progress” as Aberdeen’s NEO Energy continues work on the development.

Following approval of the group’s field development plan and the “fiscal clarity” it hopes to see following the formation of the next UK government, major contract awards and capital commitments will be set for next year.

The Greater Buchan Area covers several oil and gas accumulations around 150km north east of Aberdeen in the outer Moray Firth.

Plans submitted to the North Sea Transition Authority regulator involve the re-development of Buchan based on a new production hub utilising a new floating production, storage and offloading vessel (FPSO).

The FPSO is currently operating on the UK Western Isles fields and is planned to come-off station in the second half of 2024.

NEO Energy acquired the FPSO on behalf of the Buchan joint venture firms last year.

NEO estimates total capital expenditure forecast for the Buchan redevelopment to be approximately £850-950 million.