UK sanctions North Sea MonArb redevelopment

Britain’s government has approved Talisman Energy’s $2.56-billion MonArb area redevelopment project in the central North Sea.

Offshore staff

LONDON – Britain’s government has approved Talisman Energy’s $2.56-billion MonArb area redevelopment project in the central North Sea.

This is designed to extract a further 100 MMboe from the already-producing Montrose, Arbroath, Brechin, Arkwright, Carnoustie, and Wood fields via a new platform.

The project also includes consent to develop the Cayley and Shaw fields.

Talisman expects the project to create or sustain more than 2,000 jobs in the UK’s fabrication, construction, installation, subsea engineering, and drilling sectors.

The first major contract, valued at more than $80 million, went to Offshore Group Newcastle Ltd. (OGN Group) for the engineering, procurement, and fabrication of the platform jacket.

The UK treasury’s recent announcement of abrownfield allowance helped drive the project forward. This shields a portion of income in qualifying offshore fields from the Supplementary Charge tax.

The Department of Energy and Climate Change also worked with Talisman to secure the new investment in Cayley and Shaw by allowing short license extensions, with deadlines to achieve specified targets.

10/24/2012

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