ANOTHER current highlight in the Lundin portfolio for Curran is Peik, a mid-1980s gas-condensate discovery that has lain on various shelves since.
“It has been a stranded asset, largely because of being sat on the Norwegian-UK boundary, and we’re working that with our Norwegian colleagues in Oslo,” he said. “There’s a joint project team and we have a very active reservoir characterisation effort going on … building an up-to-date view of how much the field holds.
“We’re also in active negotiations with prospective hosts, so we would be making a host decision on where the hydrocarbons go to from Peik some time later this year. The two primary export routes are Bruce and Heimdal. There are other opportunities, but these are probably the two primary options.
“The estimated reserves base is in the 20-30million barrels oil equivalent, though we believe it’s significantly above that. It’s a gas condensate reservoir, high pressure/high temperature, and it will probably be a two or three-well subsea tie-back.”
Appraisal is complete, but Curran warns there are differences between Norway and the UK to be reconciled.
“Unitisation is not complete. It’s one of the critical paths we need to work through this year and will involve the UK and Norwegian authorities.”
Meanwhile, in early-July, an event took place that should lead to a concerted push to get Peik developed. Centrica acquired interests in a number of gas and oil assets in Norway from Marathon Oil for $375million, among them the US company’s interest in Peik.
Centrica indicated that the field could be onstream around 2012.