Bayerngas lines up North Sea farm-ins

Bayerngas UK is set to acquire interests in two gas field projects in the UK southern North Sea.

Offshore staff

LONDON -- Bayerngas UK (BGUK) is set to acquire interests in two gas field projects in the UK southern North Sea.

Under the first agreement, subsidiary company Bayerngas North Sea will take a 25% interest in the Clipper South development from Fairfield Energy. Fairfield will retain a 25% stake, with operator RWE Dea holding the remaining 50%.

Clipper South is a tight gas development. RWE Dea recently issued a field development plan, and has awarded Heerema a construction contract for a platform. First gas is scheduled for 2012.

Under the second agreement, another subsidiary, Bayerngas E & P, will acquire Endeavour Energy’s 12.5% interest in the GDF Suez-operated Cygnus field. Venture North Sea is the other partner. Two recent appraisal wells, both positive, may lead to alterations to the original development plan which was submitted last year, but BGUK still expects first gas in 2013.

Gerry Harrison, the company’s managing director said: “In combination, we believe the two projects will represent peak production of around 0.5 bcm/yr (17.65 bcf/yr) of gas net to BGUK… This fits at the lower end of our strategic ambition in the UK, but nevertheless it is an excellent foundation on which to build additional growth through exploration and development projects.”

08/31/2010

More in Field Development