Premier Oil says government approval for its UK North Sea Catcher development is expected soon and that the FEED and drilling contracts on Sea Lion in the Falklands will be issued this quarter.
Premier said key service contracts covering the Catcher FPSO (pictured), the subsea infrastructure, and drilling, have been awarded and that first oil is targeted for mid-2017.
Read more: BW Offshore seals Catcher deal - Aibel inks Catcher topsides
In the Falkland Islands, pre-development activities on the Sea Lion project continue, with a conceptual design of the TLP for the field further defined and a detailed geophysical survey of the TLP/FSO location acquired. Tender packages for the FEED contracts have been issued and proposals from engineering companies have been received. These are under evaluation with the intention to award FEED contracts in Q2. Project sanction is targeted for Q2 2015.
Also in the Falkland Islands, Premier is in negotiations with rig companies, joint venture partners, and other operators to pave the way for the 2015 exploration campaign. A rig contract and an associated rig sharing agreement is expected to be signed shortly. The campaign is planned to start in Q2 2015, and is expected to comprise four operated wells on Premier acreage; three on PL004 and one on PL032.
Vietnam
The three well development drilling programme at the Premier-operated Dua project in Vietnam is underway. The four day planned shutdown at Chim Sao to tie-in the Dua control systems was successfully completed at the end of April. First oil is planned for mid-2014.
Indonesia
In Indonesia, the Pelikan and Naga projects are progressing with the platforms currently being tied-in to the Gajah Baru facilities. Development drilling is expected to commence in Q2 with first gas targeted for the second half of 2014.
UK
Elsewhere in the UK, key service contracts covering the FPSO, the subsea infrastructure and drilling have been awarded for the Premier-operated Catcher project. The project has received board approvals from all joint venture partners and DECC approval of the Field Development Plan is expected shortly. First oil is targeted for mid-2017.
Re-development of the Kyle field continues to progress. The Banff field FPSO arrived on location in Q1 and riser installation linking Kyle to the Banff facilities is underway. The operator is forecasting mid-year for first oil.
A subsea tie back to a FPSO has been selected as the development concept for the Premier-operated Bream project in Norway and FEED contracts have been awarded.
Exploration and appraisal
Premier said Q1 saw a strong start to its 2014 campaign, with an oil discovery at Kuda Laut in Indonesia and a gas discovery at Kadanwari in Pakistan. The Kuda Laut-1 well on the Premier operated Tuna Block (Premier 65% interest) discovered 183 feet of net oil bearing reservoir and 137 feet of net gas bearing reservoir. The well is being side-tracked to target the Singa Laut prospect, the results of which are expected by month-end. The K-36 well on the Kadanwari Block (Premier 15.79 per cent interest) encountered a total net gas pay of 65 feet and flowed 50 mmscfd. The well was tied-in to the Kadanwari facilities and has been on production since 16 April. Elsewhere on the Kadanwari Block, the K-34 well encountered gas bearing sands as shown on the wireline logs but these proved tight when tested. The forward plan is to suspend the well while a decision on whether to carry out a fracturing operation is considered.
In addition to Singa Laut, forthcoming exploration wells include the Ratu Gajah-1 well on the Premier-operated Natuna Sea Block A in Indonesia. Appraisal of the 2012 Anoa Deep discovery, also in the Lama play, is planned for Q4.
In Norway, the Luno II appraisal well on the south west flank of the Utsira High will spud in June. Premier’s acreage around the Mandal High was enhanced by the award of two licences (PL 725 and PL 726); the Myrhauk exploration well, which is the first test of this play, is now expected to spud in Q1 2015.
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