Maersk receives approval for North Sea Balloch tieback

Maersk Oil UK has won development approval from Britain’s government for the Balloch oil field in the central North Sea.

Offshore staff

ABERDEEN, UK – Maersk Oil UK has won development approval from Britain’s government for the Balloch oil field in the central North Sea.

Balloch, discovered in 2010, is close to Maersk Oil UK’sDumbarton development. Production will initially come through one well tied back to the Global Producer III FPSO, which currently produces oil from the Dumbarton and Lochranza fields.

After coming onstream in April, the first well should peak at about 8,000 b/d. Maersk plans to drill a second well – it estimates total reserves from both wells at 9 MMbbl, with a combined investment of $227 million.

Potential for further development will depend on the performance of the planned production well, and assessment of recent appraisal results.

“Following ouracquisition of the remaining 30% equity in Dumbarton, Lochranza, and Balloch in 2012 from Noble Energy, we have been able to fasttrack the project, and maximize production through the Global Producer IIIFPSO, which is core to Maersk Oil’s overall production strategy. Currently we have a strong portfolio of development and exploration projects, and are fully committed to bring these onstream in the next five to seven years,” said Martin Rune Pedersen, managing director of Maersk Oil UK.

2/25/2013

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