Ithaca Energy is eyeing November as its start-up date for first hydrocarbons at the Stella field, as the company reduced its net debt to US$606 million in 1H 2016.
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The FPF-1 departing Remontowa yard. Image from Ithaca. |
After a series of set backs, Ithaca’s FPF-1 floating production unit (FPU) set sail for the Stella field in the North Sea earlier this month from the Remontowa yard offshore Poland, after completing final marine system trials. The company confirmed in its 1H 2016 results that Stella is on track for first hydrocarbons in November, three months following the sail away.
Following the tow, the FPF-1 will be moored on location using 12 pre-installed anchor chains. The dynamic risers and umbilicals that connect the subsea infrastructure to the vessel will then be installed. Thereafter, commissioning of the various processing and utility systems that can only be undertaken on location with hydrocarbons from the field will be completed, Ithaca said.
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.
“It has been particularly pleasing to announce the recent sail-away of the FPF-1, the quality and completeness of which means we move forward into the operational phase of the Stella development with confidence,”Les Thomas, Ithaca CEO said. “We remain focused on getting to first production safely and efficiently, whilst ensuring we secure the long term value of the hub through our on-going investment activities.”
In addition, Ithaca said that all of the onshore scope and testing work scheduled for completion in the yard has been completed as planned, avoiding costly carry over of unfinished work offshore. The vessel has been materially upgraded to accommodate the requirements of the GSA hub. Additional buoyancy and enhancements to the marine systems have been undertaken to extend the operational life of the vessel and entirely new topside oil and gas processing facilities have been installed.
The company secured access to the Norpipe oil pipeline system for future GSA production, allowing a switch from tanker loading during 2017.
“This move will significantly reduce the fixed operating costs of the GSA facilities and enhance operational uptime, resulting in improved reserves recovery and increasing the long term value of the GSA as a production hub,” Ithaca said.
The company was able reduce its net debt from a peak of over $800 million in 1H 2015 to $606 million at 30 June 2016.
“The business has continued to perform well over the first half of the year. Production is running ahead of guidance, operating costs have been further reduced and we have continued deleveraging the business,” Thomas said.
The company’s production was running ahead of guidance at 9378 boe/d, mostly as a result of solid performance from the Cook and Dons Area fields, in the Central North Sea and Northern North Sea, respectively. A total of 93% of its production in 1H was oil.
Read more:
FPF-1 sets sail for Greater Stella
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