Ithaca sets ball rolling on Athena

Ithaca Energy and its partners have committed to purchasing long-lead items for the Athena project in the UK North Sea.

Offshore staff

CALGARY -- Ithaca Energy and its partners have committed to purchasing long-lead items for the Athena project in the UK North Sea.

A project team has been established to plan the development and to finalize submission of this and the associated environmental statement to the UK government next month. Ithaca expects to receive official authorization in July.

Currently the partners have approved placement of orders for electric submersible pumps, subsea trees, and engineering support services. The project team will also conduct final-stage negotiation of contracts for an FPSO, construction and provision of subsea facilities, and drilling services.

The initial phase development will comprise four producer wells and one water injector. Ithaca has drilled three successful wells on Athena, 14/18b-15A, 14/18b-16, and 14/18b-18. All are currently suspended, and will be re-entered and completed for production purposes.

Interventions and drilling of the water injector and the other producer should take place from late-2010 through early 2011. Further wells will be drilled from seabed locations close to the existing wells to allow for tiebacks to a new subsea manifold.

Athena’s production will be routed via the manifold and a 2-km (1.2-mi), 8-in. (20.3-cm) flowline to the FPSO, with oil production exported from this facility to a shuttle tanker. The field’s produced gas will be used for power generation on the FPSO, which will also be equipped with modules for chemical injection, water treatment and injection, and system monitoring.

Ithaca expects all offshore installations to be completed by early summer 2011, with first oil production around the same time, at an initial rate of 22,000 b/d. Athena has estimated proven and probable reserves of 24.2 MMbbl.

02/08/2010

More in Company News