Schiehallion, Loyal partners commit to $4.8-billion overhaul

BP and its co-venturers have agreed a $4.8-billion re-development of the Schiehallion and Loyal oil fields west of Shetland.

Offshore staff

ABERDEEN, UK – BP and its co-venturers have agreed a $4.8-billion re-development of the Schiehallion and Loyal oil fields west of Shetland.

The two fields have produced nearly 400 MMbbl of oil since production started through the Schiehallion FPSO in 1998, with around 450 MMbbl of resources still available. The re-development should extend production to 2035 or beyond.

BP says it will use the latest technology to maximize recovery.

The Quad 204 project involves replacing the existing FPSO with a new FPSO, to be built by Hyundai Heavy Industries in South Korea, and which should be installed in 2015.

The new vessel will be 270 m (886 ft) long and 52 m (170 ft) wide, and capable of processing and exporting up to 130,000 b/d of oil and storing over 1 MMbbl.

Subsea facilities will also be upgraded or replaced to maximize development of the reserves.

All the new facilities should be operational in 2016.

BP will have a 36.3% ownership interest in the new FPSO, in partnership with Shell (36.3%), Hess (12.9%), Statoil UK (4.84%), OMV UK (4.84%), and Murphy Petroleum (4.84%).

07/13/2011

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