Operator Maersk Oil is to use a new standalone installation to develop the ultra-high-pressure, high-temperature (uHP/HT) Culzean gas field in the central North Sea about 145 miles east of Aberdeen.
The field, one of the largest gas discoveries of recent years in the UK North Sea, will be developed using a complex of bridge linked platforms, comprising a 12-slot well head platform (WHP), a central processing facility and utilities/living quarters for about 100 people. The facilities, sitting in about 88m water depth, could then support future projects in the area as part of a cluster development.
Images: How the Culzean development might look. By KBR, from Maersk Oil.
The total investment for the project is expected to be in excess of £3 billion (US$4.7 billion). Subject to a final investment decision in 2015, a phased installation of the facilities would begin in 2016. First gas from the project is currently expected in 2019.
Forecast plateau production is in a range of 400-500MM scf/d (this represents Maersk Oil equity production of 30-45,000 boe/d).
Contracts
KBR has been selected as the front end engineering and design (FEED) contractor, based out of its London office. Yesterday, Hercules Offshore announced a contract with Maersk Oil for a newbuild heavy duty jackup rig for development drilling on the field. Read more: Maersk inks newbuild jackup for Culzean A contract for the WHP jacket will be placed later in Q3 2014, said Maersk Oil.
Culzean in detail
Culzean is a uHP/HT field discovered in 2008, with discovery well (22/25a -9z), in Block 22/25 of the UK central North Sea, and further appraised between 2009 and 2011. The discovery well found gas and condensate at an average depth of approximately 4.5 km, within the target reservoirs of Triassic and Jurassic age. Maersk Oil says, if successfully developed, Culzean could provide about 5% of the UK’s total gas consumption by 2020/21.
Martin Rune Pedersen, Managing Director, Maersk Oil UK, says: “Culzean is a key growth project for Maersk Oil, but can also be an important new resource for the UK in terms of its potential to support energy security and employment. We also hope and expect that these new facilities will not only support production of the Culzean discovery, but serve as a hub for a new development cluster in the surrounding region. In this way, the development can play its part in maximizing recovery from the UK continental shelf.”
Culzean is a uHP/HT field. Maersk Oil UK (49.99%) is the operator, with JX Nippon (34.01%) and Britoil (BP) (16%) its co-venturers. The reservoir is located around 4300 metres below sea level.
Culzean is expected to benefit from the UK Government’s consultation on an extended uHP/HT allowance. Announced in the Chancellor’s Budget statement, the allowance would exempt a portion of a company’s profits from the supplementary charge. The amount of profit exempt will equal at least 62.5% of the capital expenditure a company incurs on qualifying projects, although the exact rate will be announced following consultation.
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