LONDON — Orcadian Energy has submitted a draft field development plan (FDP) for the 79-MMbbl Pilot oil field in the U.K. central North Sea.
Last year the company received a letter of no objection from the U.K.’s North Sea Transition Authority (NSTA) for its low-emissions concept for Pilot, a process which the U.K. government is increasingly insisting on for new offshore field development proposals.
The FDP calls for an FPSO with two wellhead platforms and 34 wells, to be drilled by a jackup, and power provided by a floating wind turbine. Orcadian estimates the emissions per barrel produced would be one-eighth of the 2020 North Sea average and less than half that of the lowest emitting oil facility operating on the U.K. Continental Shelf.
Dialogue on the draft plan with the NSTA will take place over the next few months, although Orcadian must also put in place finance for the development before obtaining full approval. A farm-out process is underway for Pilot.
The new Energy Profits Levy introduced by the U.K. government last month has improved the economics of a farm-in deal, Orcadian added, as it includes allowances designed to encourage oil and gas companies to reinvest their profits to support new project activity.
Seismic acquisition and licensing agreement
In addition, the company has entered a seismic licensing deal with TGS that will give it access to 2,070 sq km of newly reprocessed and interpreted 3D seismic data over the majority of its U.K. North Sea licenses, also allowing it to assess nearby open acreage offered under the U.K.’s upcoming 33rd licensing round.
Subject to approval for the Pilot FDP, TGS will acquire 100 sq km of new seismic over the Elke and Narwhal discoveries, with the NSTA confirming that this will satisfy the Phase B work commitment on license P2482. Orcadian has requested that the license period should continue into Phase B.