Further setback for North Sea Breagh gas project

Oct. 24, 2012
First gas sales from the Breagh field in the UK southern North Sea have been pushed until around end-March 2013, according to partner Sterling Resources.

Offshore staff

CALGARY, Canada – First gas sales from the Breagh field in the UK southern North Sea have been pushed until around end-March 2013, according to partner Sterling Resources.

This follows the latest review of design work, construction progress, and commissioning activities at the Teesside Gas Processing Plant (TGPP) which will receive Breagh’s production.

The additional delay is due to factors including late design completion, rework of certain systems, and late material deliveries. Once this work is complete, final commissioning should take about six weeks.

Operator RWE Dea now estimatesPhase 1 development costs at £632 million ($1.1 billion), up 1.4% from its previous forecast. This is due to additional rock-dumping required on the offshore pipeline, and the scope of the TGPP modifications and installation of the onshore section of the Breagh pipeline.

The third Phase 1 development well (A-03), the first drilled from the Alpha platform, is currently at a horizontal displacement of 2,300 m (7,546 ft) north of the platform. Preliminary analysis of the main reservoir has exceeded expectations, with about 99 vertical ft of net pay in Zone 1, 33% above the anticipated thickness.

This and the previously drilled wells A-01 and A-02 should be flow-tested in November. When Breagh finally starts up, four wells should be onstream.

10/24/2012