Hurricane Energy this morning confirmed it had made the final investment decision (FID) on its early production system (EPS) for its fractured basement Lancaster field.
The firm said the Lancaster EPS remains on schedule for first oil in the first half of 2019.
Hurricane has struck a deal for the FPSO Aoka Mizu with Bluewater Energy Services. The vessel left Gdansk on July 27 and is currently on tow to Dubai, where its upgrade is planned to be undertaken. It is expected to arrive by early October. The mooring buoy is also being fabricated in Dubai, where work has commenced.
Hurricane has also entered into a rig contract with Transocean for the Paul B. Loyd Jr. semi-submersible drilling rig to complete the previously drilled Lancaster 205/21a-6 and 205/21a-7Z horizontal production wells. The drilling is expected to be carried out in the second quarter of next year.
The EPS will unlock an initial 17,000 barrels of oil per day, according to Hurricane’s chief executive.
Robert Trice said:“I am delighted that all operational work streams are proceeding on track for delivery of the project within the target timeline of first oil in 1H 2019.
“Successful completion of the Fundraising allowed the Company to move ahead with the upgrade of the FPSO, fabrication of the buoy, and procurement of the subsea components for installation work to begin next summer. We greatly appreciate the contributions of our key contractors and partners, Bluewater Energy Services and TechnipFMC, in progressing the project at pace.
“The Lancaster EPS is not only an essential step in planning for the full field development of the company’s Rona Ridge assets, but also represents a substantial development in its own right, with planned production of 17,000 barrels of oil per day.
“We look forward to providing further updates as we move forward with engineering, procurement, installation and commissioning (EPIC) activities; and once regulatory approval is obtained.”
TechnipFMC won the contract for Lancaster’s SURF and SOS work.
The service firm has already started the procurement and fabrication of the main subsea components of the development including subsea umbilical, risers and flowlines (SURF) and subsea production system (SPS). Subsea installation activities at Lancaster are scheduled for summer 2018, in advance of the planned arrival of the Aoka Mizu.
A TechnipFMC vessel has also recently completed a further seabed survey as part of the planning process for boulder clearance around the area planned for SURF installation.
Hurricane was established to discover, appraise and develop hydrocarbon resources associated with naturally fractured basement reservoirs.
Hurricane’s acreage is concentrated on the Rona Ridge, West of Shetland. The Lancaster licence, the company’s most appraised asset, has combined 2P Reserves and 2C Resources of 523 million barrels. In addition, the company has 205 million barrels of oil equivalent on its Whirlwind licence
During the 2016-2017 drilling campaign the company made two significant discoveries at Halifax and Lincoln, indicating that the Greater Lancaster Area and the Greater Warwick Area have the potential to be two large accumulations.