Ithaca Energy is edging closing towards first oil from the Greater Stella Area Development in the UK North Sea.
First oil, from the FPF-1 floating production unit, is scheduled for next month, as planned.
The unit set sail from Poland in August and was safely towed to location, where it was moored and the dynamic risers and umbilicals connecting the subsea infrastructure to the vessel installed.
Technip is in the process of concluding the remaining subsea commissioning works, says Ithaca. At the same time the FPF-1 offshore commissioning program is on-going, with preparation of the topsides processing and utility systems for the introduction of hydrocarbons underway.
Significant progress was also made during the Quarter on the work program associated with making the switch from tanker loading to oil pipeline exports for the Greater Stella Area in 2017.
A 44km spurline from the FPF-1 to the Norpipe system was successfully installed as planned in September 2016. The key outstanding activities that now remain to be completed are the manufacture and installation of pipeline export pumps on the FPF-1 and the final subsea connections that need undertaking immediately prior to the switchover.
Stella is in Blocks 29/10a and 30/6a under license 011. Ithaca's partners are Dyas (25.34% interest) and Petrofac (20%), with Ithaca holding the remaining 54.66%.
Prompt ramp up of production is anticipated following first hydrocarbons, leading to an expected initial annualized production rate of approximately 16,000 boe/d net to Ithaca.
The FPF-1, previously known as the AH001, was previously owned by Hess and operated by Aker Production Solutions. The AH001 had been converted from the Sedco/Phillips SS, the first offshore safety vessel. It was originally built by Mitsubishi Heavy Industries Shipyard at Hiroshima in Japan and delivered in 1977 at a cost of $40 million.
Completion of modifications on the vessel, which had most recently been used on the North Sea Ivanhoe and Rob Roy fields in the UK North Sea, has seen a series of set backs. Petrofac, the contractor, had its contract incentivized so that Petrofac would be paid up to US$34 million on sailaway prior to the end of March this year, reducing to zero after the end of 31 July.
Image from Ithaca Energy.
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