New North Sea oilfield Avalon to be developed with FPSO and floating wind combo

A “key milestone” has been reached for Avalon, a new oilfield in the UK North Sea, to go ahead.

The North Sea Transition Authority (NSTA) has given a “letter of no objection” to operator Ping Petroleum for its development concept.

Avalon is 100% owned by Ping Petroleum, a subsidiary of Malaysia’s Dagang NeXchange (DNeX).

The next phase is to submit a field development plan, which also requires NSTA approval.

Avalon is expected to produce 23 million barrels of oil and Ping said it intends to develop the field via a re-used Floating Production Storage and Offloading vessel (FPSO).

The firm said the vessel has spare ullage to provide an offtake route for “nearby stranded discoveries” and is in talks with the regulator and supply chain to decarbonise the development with Floating Offshore Wind.

Ping has previously been said to be considering various options for Avalon, including a potential tie-back to the CNOOC Scott platform.

There are several FPSOs which could be re-used in the sector, such as the Voyageur Spirit, currently laid up at Kishorn, and the EnQuest Producer at Nigg, though Ping has not named the selected vessel.

The firm is now finalising conceptual planning and beginning Front End Engineering works ahead of submitting the Avalon field development plan.

It comes as the Ping is expected to take a crucial Final Investment Decision (FID) on the development later this year.

First oil is anticipated between mid-2024 and mid-2025 and is planned to produce at initial rates of 20,000 barrels per day.

DnEX said the milestone letter from the NSTA represents a “material opportunity to expand and diversify” Ping’s portfolio of assets.

Managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, said: “The next step for Ping is to submit the company’s field development plan for Avalon to NSTA by the next quarter.

“Once approval is attained, the company will proceed with the full development programme.”

© Supplied by DNeX

Ping’s other assets include a 50% stake in the Anasuria Operating Company, which operates the namesake field and FPSO in the North Sea, which is a joint venture with Malaysian compatriot Hibiscus Petroleum.