Apache is moving ahead with its Callater development in the Beryl area despite spending cut backs in its North Sea business.
The firm has awarded Subsea 7 an engineering, procurement, installation and commissioning (EPIC) contract as part of its Callater field development, located 335km north east of Aberdeen.
The Callater field was among three fields, including Seagull and Corona, discovered last year (2015) in the Beryls area, bought by Apache off ExxonMobil in 2012 for $1.4 billion. The firm said late last year the area contains some 350-600 MMboe unrisked net reserve potential.
Early February, Apache said it plans to bring Callater online mid-2017 at a rate of about 15,000 boe/d net to Apache.
Following Callater, the firm plans to bring online the Corona discovery, mid-2018, at a rate of 5000-10,000 boe/d net to Apache. Corona was the firm's first injectite discovery and helped to derisk that play in the Beryls area, with drilling on the Titan injectite prospect being considered. Meanwhile, the firm has a drilling rig lined up to drill the Storr prospect.
However, the new developments comes at a time when Apache is "significantly curtailing" its North Sea development drilling program. Earlier this year, the firm said it plans to employ no platform rigs during 2H this year, which is set to dent Apache's 2016 from the 71,000 boe/d achieved in 2015.
The Callater contract work scope covers the project management, engineering, procurement, construction and installation of a 4km, 45in pipeline bundle system consisting of production lines, and power and supply services. It also includes the installation of a 13km electro-control umbilical, associated structures, field testing and pre-commissioning works.
Project management and engineering work will commence immediately from Subsea 7's offices in Aberdeen, with offshore activities planned for Q1 2017.
Image: A Subsea 7 bundle tow-out. Image from Subsea 7.
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