Xcite Energy has agreed a memorandum of understanding (MOU) with China Oilfield Services Limited (COSL) over the provision of a new-build Keppel FELS N Class Plus, harsh environment jackup drilling rig, to be used on the North Sea Bentley heavy oil field.
The move is the latest in a string of agreements Xcite has made with suppliers in its bid to develop the Bentley field, estimated to contain 257MMbbl 2P reserves, and covering about 70sq km in Block 9/3b, licesnes P1078.
Xcite has MOU's with Teekay Shipping, for the use of a floating storage and offloading facility, to be used on the field, and Aibel, for engineering and project management work on an Ove Arup & PArtners designed self-installing platform.
The firm also has a collaboration agreement with Statoil and EnQuest over the Bentley and nearby Bressay fields. Last month, Xcite signed an MOU with Baker Hughes over the procision of oilfield services.
Final specifications of the rig are currently being agreed in order for construction to begin at the Keppel FELS yard in Singapore. COSL would also supply the related equipment and personnel needed.
Rupert Cole, CEO of Xcite Energy, commented: "We are very pleased that COSL has joined the Bentley development team and this marks the last of the key development group roles to be filled. COSL has considerable experience in drilling operations and we believe they possess the skills and expertise to work alongside our other partners in our collaborative and innovative model. Selecting this ultra-high specification drilling rig, and constructing it at the Keppel FELS yard in Singapore, is an important part of securing both the future schedule and drilling efficiency of the Bentley project."
Bentley is about 160km east of the Shetland Islands on the western edge of the Viking Graben. Oil reserves are about 257MMbbl 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.
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