Aberdeen-based independent explorer Xcite Energy Resources (XER) has agreed a memorandum of understanding (MOU) with Teekay Shipping Norway on the use of a floating production facility for its Bentley heavy oil field in the North Sea.
The agreement sets out the principles of co-operation for the supply of a Sevan Marine-design cylindrical floating storage and offloading (FSO) facility, which would be bridge linked to the Bentley production facility, for the life of the Bentley field.
Sevan Marine ASA will work closely with, and formally as a sub-contractor to, Teekay under this MOU.
"XER and Teekay intend to work together on an exclusive basis during the project, from front end engineering through fabrication, hook up and onwards into production operations and maintenance," XER says in a statement.
"XER believes that the bridge linked Sevan FSO offers a number of significant benefits to the overall Bentley field development concept, including available deck space to locate utilities on either the platform or FSO.
"In addition, XER believes that there would be reduced flow assurance risk, due to the removal of subsea pipelines and minimized motion characteristics to aid reservoir fluid dehydration."
Rupert Cole, parent company Xcite Energy's CEO, says: "We are very pleased to be joined by Teekay as a partner in the development group, following on from their important role in the successful Bentley extended well test. Building on this relationship as we progress Bentley towards production, we believe will deliver the Sevan FSO as a vital component of the Bentley field development plan."
The Bentley field covers about 70sq km is in Block 9/3b, license P1078), 8km southeast of the Bressay Field (operator: Statoil), 15 km east of the Kraken Field (operator: EnQuest) and 20 km north-northeast of the Bruce Field (operator: BP).
It is about 160km east of the Shetland Islands on the western edge of the Viking Graben. Oil reserves are about 257MM 2P, 10°-12° API, according to Xcite.
The license was granted to Xcite under a Promote license in 2003 and converted to a traditional license in 2005.
The field, discovered in 1977, is a four-way dip closed structure of Lower Eocene and Upper Palaeocene Dornoch sandstone reservoir. It has been delineated by nine well penetrations and recent 3D seismic from a 2011 program.
A phased development plan has been outlined to include two 20 slot platforms, with 4-5 laterals per well, with a floating storage and offloading vessel, and further subsea wells.