The third-largest upcoming project for the UK North Sea has hit a key milestone ahead of reaching the development green light.
NEO Energy has submitted environmental documents to the UK Government for the redevelopment of the Buchan field, 93 miles off Aberdeen.
A redevelopment of a former Repsol Sinopec field in the Moray Firth, Buchan has an estimated 162m barrels of oil equivalent (gross 2C).
Under the plans, NEO will establish a new production hub at the renamed Buchan Horst field using the Western Isles floating production, storage and offloading vessel (FPSO).
© Supplied by NEO EnergyNEO Energy acquired the Western Isles FPSO on behalf of the Buchan joint venture, which includes Serica Energy and Jersey Oil and Gas (JOG), in November last year.
It is currently operating on the UK Western Isles fields and will come-off station in the second half of 2024.
According to documents submitted to OPRED, NEO will commission modification work to enable the vessel to be electrification ready from 2030.
NEO will aim to power production from a nearby INTOG offshore wind farm, with the Green Volt and Cerulean Winds projects mentioned as possible candidates.
Meanwhile, NEO expects drilling to commence in mid Q2 2025, with first oil expected from Q4 2026.
NEO estimates total capital expenditure forecast for the Buchan redevelopment to be approximately £850-950 million.
Greater Buchan Area phased development
The renamed Buchan Horst field forms part of the Greater Buchan Area (GBA), which covers several oil and gas accumulations under the P2498 and P2170 licences.
Of the deposits in the GBA, the largest is the Buchan field which produced for over thirty years before it ceased production in 2017 due to the end of the useable life of the floating production facility.
© Jersey Oil and GasAfter completing a farm-in deal last year, Serica said plans for a “phased development” involve the re-development of the Buchan field in the first phase and the possible development of the J2 and Verbier discoveries in the second phase.
The company estimates mid-case contingent resources from the Buchan field alone to be in the region of 70 million barrels of oil equivalent, with peak production rates of approximately 35,000 barrels of oil equivalent per day.
Reserves of that size make it the third largest pre-development field in the UK continental shelf.
Serica said other discoveries and prospects in close proximity could provide additional tie-back opportunities to the FPSO.
Buchan electrification
NEO said while the exact timing and third party source of electrification for its Buchan plans are not yet finalised, the company plans for full electrification by early 2030.
The company’s preferred source of power for the FPSO is through an offshore wind farm which is part of with Crown Estate Scotland’s INTOG leasing round for offshore wind projects.
© Supplied by Flotation EnergyIn addition, other options being considered as contingencies include power-from-shore, a dedicated offshore wind farm associated with Buchan Horst, and combined supply with other operators via shared cable from shore.
As for its export plans, NEO said while it considered pipeline solutions via the Forties Pipeline System or the Flotta Catchment Area, the company selected export via shuttle tanker as the preferred option.
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