The investors behind a £81million rescue package for North Sea firm ATP Oil and Gas are to look at new options for developing the Cheviot field after dumping previous plans for the project.
Petroleum Equity completed its takeover of the ATP Oil and Gas’ UK operation after the firm’s parent company in the US filed for bankruptcy protection.
The original plan for the 200million barrel field, around 60 miles east of Shetland, had been to use one of the Octabuoy-style semi-submersible platforms.
But after delays and increased costs on the project, the new owners have decided to dump the original plans and look for an alternative method of developing the field.
“As part of the restructuring, the expensive and overdue Octabuoy development concept for the Cheviot field has been shelved,” said Petroleum Equity founder Bernhard Schmidt.
“We are now working with management to review the options for developing the field as soon as possible in a manner that best suits its North Sea location; most likely with an FPSO.”
Work on the platform begun in 2008, ahead of expected completion last year, at the COSCO shipyard in China.
Last week the new owners were given more time on their licences for the Blythe and Skipper North Sea licences, which the firm shares with UK firm Independent Oil and Gas.
Blythe contains up to 30billiobn cubic feet of recoverable gas while Skipper, around 140km south-east of Shetland, is thought to hold around 26million recoverable barrels of oil.
Output from the former is expected to fund development of the latter, with the company given a further 18 month extension to firm up plans for the fields.
“One of the most important elements of this investment is that following a Company Voluntary Arrangement process, we have secured the write-off of more than $1.2billion of debts, leaving ATP UK free of all debts and liabilities to rebuild its business,” said Petroleum Equity founder Daniel Reis.
“The company now has a clean balance sheet and is properly funded with equity to go forward with its business plan.”
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