Private equity backed independent Alpha Petroleum Resources is targeting first oil from its UK North Sea Cheviot oil field in 2019, after entering agreements with floating production system provider Teekay.
Alpha expects to achieve sanction for the development during Q3 2017 and is targeting first oil production in 2019 at an expected rate of at least 30,000 b/d, using Teekay's Varg floating production, storage and offloading (FPSO) vessel.
Varg had been used on Repsol's Varg field, offshore Norway, which the Spanish oil field shut-in last year, five years ahead of original plans to abandon the field, after it become uneconomic to run.
The Cheviot development will consist of a minimum of 18 wells: 13 production wells, two water injection wells and two gas injection wells. It also includes one production well established in the satellite Peel oil reservoir.
Options exist to use additional processing capacity on the Varg FPSO, which will be considered during the FEED process. This would allow for infill wells to increase ultimate recovery.
Alpha Petroleum has concluded that maximum recovery would be achieved via re-injection of produced gas and water and use of horizontal wells to minimize drawdown.
Alpha has agreed a front-end engineering and design (FEED) study with Teekay Offshore Partners for the Varg FPSO.
Alpha also has an exclusivity agreement with Teekay Offshore and during FEED will negotiate a lease and operate contract for the entire expected life of the Cheviot oil field.
Alpha Petroleum owns 100% in the Cheviot field and says is one of the largest undeveloped oil fields in the UK sector of the North Sea.
Andy Crouch, Alpha Petroleum’s Executive Chairman, said: “We are focused on creating long-term value by bringing Cheviot to production and building a hub around the Cheviot field to unlock further upside in nearby undeveloped discoveries.”
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