BG to rethink options for Jackdaw in North Sea

Oct. 29, 2014
BG Group and its partners are delaying a sanction decision on the ultra-high-pressure/high-temperature Jackdaw project in the UK central North Sea.  

Offshore staff

READING, UKBG Group and its partners are delaying a sanction decision on the ultra-high-pressure/high-temperature Jackdaw project in the UK central North Sea.

This is to allow more time for studies of more economic and lower-risk development solutions that include a tieback of the field to third-party infrastructure.

Early this month, BG shut down the Everest production complex in the same region for asset integrity and safety-critical maintenance. Storm damage to the accommodation flotel meant that the vessel had to be taken to shore for repairs.

Maintenance continues using personnel available on the platform, but the scope has been reduced. Work items not completed over the next few weeks will be deferred to a shutdown in 2015.

Offshore Norway, BG’sKnarr FPSO will shortly sail to its field location. BG is still targeting first production before year-end, although this will depend on receipt of Norwegian regulatory approvals and favorable weather during mooring and well connection activities.

The net cost of the project to BG has increased to $1.2 billion, reflecting the expanded scope of works to accommodate the later development of the Knarr West discovery, but also rising subsea sector costs.

In theEgyptian sector of the Mediterranean Sea, five of the Burullus-operated West Delta Deep Marine Phase 9a gas wells are now onstream, BG says, although the nine-well development will only temporarily offset its underlying Egyptian production declines.

OffBrazil, the 150,000-b/d FPSO Cidade de Ilhabelahas moved into positionat Sapinhoá North in the presalt Santos basin and should start production later this year. To date, seven producer wells have been drilled and tied back to the floater.

The 150,000-b/dCidade de Itaguaifor Iracema North in the same region is around 75% complete, BG adds, and operator Petrobras expects first oil during 4Q 2015.

10/29/2014