New North Sea projects move ahead

May 1, 2006
ATP Oil & Gas Corp. has begun gas production at an undisclosed rate from the Tors development in Kilmar field on UK North Sea block 43/22.

Pam Boschee, International Editor

ATP Oil & Gas Corp. has begun gas production at an undisclosed rate from the Tors development in Kilmar field on UK North Sea block 43/22.

ATP operates the Southern Gas basin block and holds an 85% interest.

Production is from a multi-level well drilled to 11,025 ft TVD. The well, in 180 ft of water, is the first of at least four scheduled in the first phase of the Tors development.

When fully developed, Tors will produce 50-75 MMcf/d net to ATP. Tors has 73 bcf of gas equivalent net proved reserves and 42 bcf of net probable reserves.

Tors is one of ATP’s designated “Top 5” projects (see table), which include two other North Seas projects.

ATP’s top five properties
Cheviot
North Sea
MC 711
Gulf of Mexico
Tors
North Sea
King’s Peak
Gulf of Mexico
Venture
North Sea
(bcfe)
Proved182.393.172.955.726.3
Probable47.247.242.226.430.8
Total229.5140.3115.182.157.2

Based on proved reserves at Dec. 31, 2005. Source: ATP Oil & Gas Corp.

Beginning later this year, ATP plans a 1-3 well (75-ft water depth) program at Wenlock (formerly known as Venture), which it acquired in 2001. The company plans to construct a new platform and deck for installation in late 2006, and is reviewing two possible pipeline routes. First production is projected in winter 2007. Wenlock is expected to add 75+MMcf/d net to ATP.

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ATP acquired Cheviot in 2003. The field is slated for development in 2006 - 2010, with 15-20 wells (500-ft water depth). It previously produced 16 MMbbl from 1992 - 1996 with less than 8% of original oil recovered. Development plans call for a 20-slot platform, a gas pipeline, and oil to be tankered. First production is projected in 2008. Cheviot is expected to add 150 -200 MMcfe/d net to ATP.

ATP holds 100% working interest in both fields.

• • •

Total SA has started production from Glenelg gas and condensate field in 100 m of water in the UK North Sea, 240 km east of Aberdeen.

Production is from a highly deviated well drilled a total depth of 7,300 m from the Elgin platform into a high-temperature, high-pressure reservoir 5,600 ft below sea level.

Total says the well has potential to produce 30,000 boe/d of gas and condensate.

Total holds a 49.47% interest and is the operator. Other interests are E.ON Ruhrgas 18.57%, BG International 14.7%, GDF 9.26%, and Eni SPA 8%.

• • •

Statoil has realized savings of $61.9 million over three years through more efficient working in the North Sea Tampen area together with contractor Aker Offshore Partner (AOP).

All maintenance and modification (M&M) work on production licenses operated by the group has been allocated to AOP under a single contract when Statoil became operator for all Tampen installations in 2003.

The collaboration with AOP includes nine platforms on the Statfjord, Gullfaks, Snorre, and Visund fields.

The contract went into effect in 2002 and has totaled more than $464.3 million, averaging about $154.8 million per year.

Because the number of working hours is unchanged, the efficiency improvements have resulted in provision of more maintenance for the same amount of time.

The collaboration gave Statoil an efficiency gain of more than 10% in 2005 alone when compared with the reference year of 2003.

Although several of the fields involved have been onstream for more than 20 years, Statoil has long-term production plans for the whole area. Consequently, consistent maintenance and upgrading of the equipment and facilities on the various installations will be required.

• • •

Norsk Hydro says that testing of subsea production equipment for the Ormen Lange field in the Norwegian Sea will be completed by the end of May. The Grenland Group engineering firm is conducting the tests at its yard in Tønsberg, Norway.

A 120-m-long prefabrication facility at the yard is filled with the subsea production equipment, which will be remotely controlled at a sea depth of 850 m. Supplier FMC Kongsberg and its subcontractors have been carrying out the operations that the equipment will need to perform when it is deployed over the next few months.

The production facility includes a 35 m-by-30-m PLET (pipeline end termination) that is used to connect the production pipes running into the land-based facility at Nyhamna with two templates on the seabed.

The facility’s PLET system is a replica, which will only be used during testing. The PLET that will actually connect the 30-in. pipes from Nyhamna to the production equipment on the seabed was already installed in the field last August.

Installation of the production equipment is targeted to be complete by the end of summer 2006.

This year’s testing in Tønsberg supplements the work that was carried out last year, before the two seabed templates were installed on the sea floor.