North Sea Energy (NSE) has failed to have a UK court recognise its “right of non-consent” in the drilling of a well in the Jacky field, about 12 miles from the Moray Firth coastline.
Ithaca Energy said in May 2011 that its J03 well on the Jacky field had been suspended because it was deemed to be non-commercial. Ithaca owns 47.5% of Jacky, with Dyas UK holding 42.5% and NSE 10%.
NSE opposed the drilling of the J03 well on the basis of its technical and economic merits. The Toronto-listed firm said yesterday: “The UK High Court’s Judge Popplewell has deemed that the J03 well was not an appraisal well but rather a producer . . . regardless of the fact that it has never produced any oil.”
Chief executive Craig Anderson added: “It’s a blow for minority joint-venture partner rights in the UK North Sea, and I am very disappointed by the Popplewell judgment.”
NSE said it had already paid all costs associated with the drilling of the J03 well and would now have to pay Ithaca’s legal fees, estimated to be more than £500,000.
Oil was trading above $100 a barrel for the first time in three weeks yesterday as tension over Iran increased concerns about supply.
Iran has threatened to block the Hormuz Strait – the passageway for around 40% of the world’s oil supplies – and has also said it has tested missiles capable of hitting Israel.
Meanwhile, crude shipments from Norway have also slowed because of a strike. Brent added $3.32 at $100.66.