EnQuest says its Kraken field is on track to reach 50,000 bo/d gross in the first half of 2018 after achieving month on month production growth since coming on stream June this year.
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Early this month, Kraken reached average production rates of around 23,000 bo/d gross, the company reported today (30 November). The field’s second production processing train was brought on stream this month as well, reaching production of more than 40,000 bo/d.
The final drill center (DC) 2 production well also has come online. The company reports seeing excellent drilling performance for its DC3 wells, which are nearing completion ahead of schedule; the process of bringing these wells onstream is underway. EnQuest also says it is making plans to drill DC4 in 2018.
The company completed second and third cargo offloads from Kraken in October and November. The latest cargo sold was contracted for a discount to Brent of less than $5/bbl, EnQuest says in a 30 November operational update.
In August, the company reported that production from the UK North Sea heavy oil field was taking longer to ramp up than anticipated due to commissioning of the floating production storage and offloading vessel’s (FPSO) topsides equipment falling behind schedule. Despite this delay, EnQuest CEO Amjad Bseisu said the company was pleased with Kraken’s reservoir performance and flow rates achieved on individual wells.
The field, located about 125km east of the Shetland Islands off Scotland, started production on 23 June. The $2.5 billion Kraken development will have 25 wells, including 14 production wells and 11 injection wells, that will produce via Bumi Armada’s Armada Kraken FPSO. Wood Mackenzie reported in June that it expected Kraken production to peak at nearly 50,000 b/d in 2019, providing 4.5% of overall UK liquids production for that year.
The four wells from DC1 and three wells from DC2 have produced at initial gross rates above expectations and with stabilized rates that confirm EnQuest’s development plan. All DC1 wells have tested at a maximum rate of about 24,000 boe/d, and stabilized well rates at around 15,000 bo/d. One DC2 well has tested at a rate of over 10,000 bo/d, “demonstrating excellent reservoir properties and completion efficiency,” EnQuest says.
The company says it has been to reduce Kraken’s full cycle gross capital expenditures by 25% from its original sanctioned cost of $3.2 billion, thanks to the success of the DC3 drilling program and lower market rates for the remaining subsea campaign.
EnQuest holds 70.5% interest in Kraken; Cairn Energy is partner with 29.5%.
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