The North Sea oil and gas industry got another boost yesterday with news of a £645million investment from Total E&P UK.
The oil company said that the UK Government had approved the Phase 2 development of its West Franklin field in the Central Graben Area.
West Franklin – the deepest, high-pressure/high-temperature field developed on the UK continental shelf to date – is about 150 miles east of Aberdeen.
The field, which exports via the Total-operated Elgin/ Franklin installation, was discovered in 2003 and began producing in 2007.
Drilling of an appraisal well in 2008 more than doubled the field’s estimated reserves and prompted this latest development.
Phase 2 is a three-well programme aimed at accessing reserves currently estimated to be around 85million barrels of oil equivalent (boe).
First production from Phase 2 is expected in the last quarter of 2013 and should reach 40,000 boe per day. The development will involve the installation of a wellhead platform (WHP), to be connected to the Elgin complex.
The WHP jacket is expected to be in place by the end of next summer, followed by the topsides and inter-field pipelines in summer 2013.
Roland Festor, managing director of Total E&P UK, said: “We are delighted to have received the go-ahead for what is another significant development for us.
“It will help to further extend the productive life of our Elgin/Franklin hub and highlights again Total’s ongoing commitment to the UK continental shelf.”
Energy Minister Charles Hendry said: “This is the second major UK development announcement from Total in recent months and it is encouraging that companies continue to find opportunities of this scale in UK waters. Oil and gas will continue to play an integral role in ensuring secure energy supplies as we move towards a low-carbon economy.
“This government is committed to ensuring we maximise our indigenous resources, which will help reduce our dependency on energy imports and create valuable UK jobs.”
Total E&P UK is the fourth largest oil and gas operator on the UK continental shelf and is a subsidiary of Total, whose activities span around 130 countries.
There are about 700 staff based at its Aberdeen headquarters.
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