CALGARY, Canada – Canadian Natural Resources has approval from Britain’s government on three brownfield allowances (BFAs) in the northern UK North Sea.
BFAs, first announced in 2012, provide a property development allowance on qualifying pre-approved field developments. This mitigates the impact of previous supplementary income tax increases.
One BFA on Canadian Natural’sTiffany field resulted in a two-well infill drilling program that delivered first oil in May 2013.
Another BFA, for theNinian field, concerned a development plan comprising four new production wells, four injectors, and two well upgrades. The program started in 4Q 2013.
In 4Q 2011, the Banff/Kyle FPSO incurred damage following a storm and removed from the field for repair. Currently the vessel is undergoing repairs and CNR expects it to return to the field this summer, followed by a resumption of oil production.
The company started decommissioning of theMurchison platform in 4Q 2013 and expects the program to continue for about five years.
In October, the company entered into a Decommissioning Relief Deed with the UK government. This is a contractual mechanism under which the government guarantees its participation in future field abandonments through a recovery of petroleum-related tax and corporate income tax.