Two contracts worth a combined £430million have been awarded in connection with the development of the Huntington oil field in the UK central North Sea.
Premier Oil said yesterday that E.ON Ruhrgas UK, operator of the Huntington field, had announced it would lease the floating production vessel Sevan Voyageur to develop the field.
It said the Sevan Voyageur, owned by Norway’s Sevan Marine, was in the Nymo yard at Arendal, Norway, where gas compression and water injection upgrades would be carried out.
It is expected to be installed on the Huntington field in the fourth quarter of 2011, with production scheduled to start in the first quarter of 2012.
Premier said production facilities would have a capacity of 30,000 barrels of oil per day, while associated gas would be exported via pipeline through the CATS system.
The contract with Sevan will be for a firm fixed term of five years, with options for the Huntington owners to extend. Premier has a 40% interest in the licence, E.ON Ruhrgas UK has 25% interest, Altinex Oil 20% and Carrizo Oil & Gas 15%. Separately, Sevan Marine said the estimated value of its five-year contract was around £330million.
Meanwhile, Wood Group said yesterday it had been awarded a five-year £100million operations and maintenance contract by Sevan Marine to provide asset management services for the Sevan Voyageur. Wood Group said that as duty holder, appointed by Huntington field operator E.ON Ruhrgas, it would have complete responsibility for operations management and offshore technical, logistical and supply chain support on the vessel.
It added that this was the second contract it had been awarded on the Sevan Voyageur and followed the vessel’s relocation from the Shelley field to the Huntington field.
Wood Group is also duty holder for the floating production vessel Sevan Hummingbird, which operates for Centrica Energy Upstream on the Chestnut field in the central North Sea.
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