Antrim Energy said yesterday a deal it had struck for a floating production vessel could help it to unlock more fields in the UK North Sea.
The firm, based in Canada with offices in Surrey, has signed a heads-of-terms agreement with Teekay for the use of the Hummingbird Spirit floating production vessel.
It will be used to develop Antrim’s 100%-owned and operated Fyne field in the central North Sea, but could then be used on other nearby Antrim or third-party owned assets.
The firm, which said it hoped for first production in late 2014, will have to wait until the Hummingbird comes off contract with Centrica Energy Upstream, which is using it on its Chestnut field.
Centrica has recently extended its contract with Teekay on Hummingbird and has options to use it until March 2015.
Antrim will also need to get approval to develop Fyne from the Department of Energy and Climate Change (DECC).
Announcing the deal, Antrim chief executive Stephen Greer said: “This agreement for the Hummingbird Spirit is a major achievement. Development of the Fyne area in the UK central North Sea has been hindered for some time due to the lack of commercial infrastructure and export route.
“The Hummingbird Spirit resolves that issue, not only for the Fyne field, but potentially for other Antrim assets in the area and nearby stranded assets of other operators. Antrim looks forward to successfully leading the development of the area.”
Centrica said yesterday it was confident it would be making use of all its options on Hummingbird, taking its contract into 2015, because of good reservoir performance from Chestnut.
When it started work on Chestnut, 124 miles north-east of Aberdeen, in 2008, the Hummingbird was the first cylindrical floating production vessel to come into service in the UK North Sea.
Built in 2006-07, it can accommodate 44 people and has oil production capability of 30,000 barrels per day.
Until last year the Hummingbird was owned by Sevan Marine, which designed and had the vessel built.
Antrim said it hoped to submit a field-development plan for Fyne to the DECC in January.
A recently updated reserve estimate for the field, which included the results of an appraisal well drilled in the East Fyne area earlier this year, put 2P (proved plus probable) reserves at 11.7million barrels of oil.