Investors like heavy oil in UK far north
Eldon Ball • Houston
Heavy oil suddenly is hot property in the UK North Sea. Interest is keenest in Quadrant 9 blocks in the far north, where a hub could soon emerge serving four long-neglected fields.
According to Britain’s Department for Business, Enterprise and Regulatory Reform (BERR), there are 19 heavy oil discoveries throughout the UK shelf, with in-place reserves totaling 9 Bbbl. Many were discovered in the 1970s and ’80s, but none were developed until Kerr McGee’s Gryphon field came onstream in 1993.
Currently there are six active heavy oil fields collectively generating 150,000 b/d, equivalent to 10% of the UK’s crude production. Of these, the most prolific are Chevron’s Captain and Alba in the central North Sea, ranked respectively third and eighth in the UK output league.
The new band of investors is led by StatoilHydro, operator of Mariner in block 9/11c and Bressay in two blocks adjoining Quadrant 9’s northern border. Both are potentially the largest undeveloped resources on the shelf, with combined in-place oil of over 2 Bbbl.
Although heavy oil is less mobile within the reservoir than lighter crudes and harder to extract, horizontal wells and smarter completions, with longer-lasting electric and hydraulic submersible pumps, are transforming the economics of these fields. See the report by Jeremy Beckman, Editor-Europe, beginning on page 40.
Alvheim opens oil play in gas-prone Heimdal region
Elsewhere in the North Sea, Marathon took its production capability to a new level in June when the Alvheim field came on stream in the Norwegian North Sea. When plateau output is reached toward year-end, Alvheim will be producing close to 120,000 b/d of oil.
With a 65% stake in the field, Marathon’s net share will be around 80,000 b/d, raising its global production by around 20% – so this is clearly an important project for the company, says managing director, Kristin Færøvik. Its partners are ConocoPhillips with 20% and Lundin with 15%.
Alvheim resulted from an intensification of the company’s activities in Norway around the turn of this century. For a complete report of how Marathon managed the field development, see the article by Nick Terdre, Contributing Editor, beginning on page 48.
PennWell serves as ONS 2008 official publication
PennWell is proud to serve as the official media sponsor of ONS 2008, Aug. 26-29, in Stavanger, Norway, and Offshore magazine will be there to provide full media coverage of the event.
Offshore’s coverage will include an online iShow Daily report for every day of the event. The popular iShow Daily, written exclusively by Offshore editors, is distributed by email to all registered attendees and to selected industry professionals worldwide. It includes on-site reports of presentations, activities, news, and events, as well as reference data for the show program, exhibit locations, and related events.
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Volume 68 Issue 8
August 2008
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