Premier aims to partner Chrysaor in Solan

Premier Oil has entered into an agreement to back into Chrysaor’s Solan field development west of Shetland.

Offshore staff

LONDON-- Premier Oil has entered into an agreement to back into Chrysaor’s Solan field development west of Shetland.

Once Chrysaor’s board has issued final sanction of a development plan, Premier will have an option to acquire a 40% interest in the field. If exercised, Premier will pay a bonus following further approval by the UK Department of Energy and Climate Change; carry of 20% of the development costs; and pay a contingent bonus on completion of the project.

Solan, with estimated reserves of 45 MMboe, is 160 km (99 mi) north of mainland Scotland. The planned development involves a standalone unmanned oil processing and storage facility in the form of an articulated tower structure.

Among Premier’s current offshore production and exploration interests in the central UK North Sea, the Balmoral facilities are shut down to allow installation of umbilicals ahead of first production from Talisman’s Burghley subsea development late this summer.

Operations on the Shelley field came to an end on July 14. The VoyageurFPSO is due to sail away in August for modifications ahead of a planned re-deployment on the Huntington field.

Premier expects the drilling rig for the Oates prospect to arrive on location by July 20. The exploration well should take 30 days to reach target depth.

A well on the West Rochelle prospect on block 15/26b should go ahead in August, subject to partner agreement.

In the Norwegian North Sea, Premier still hopes to spud the Gardrofa well. Its attempt to take advantage of an earlier rig slot to advance well preparations was rebuffed by Petroleum Safety Authority Norway. However, discussions continue with the authorities and the rig contractor to identify a drilling window for the well.

Elsewhere, Premier says the Gnatcatcher and Grosbeak appraisal wells should spud in October and December, respectively

Bids for the Frøy development facilities (Premier is a partner to operator Det norske oljeselskap) are being evaluated and results of a tender process for a wellhead platform are expected in August. Discussions also are in progress with consortia in neighboring blocks regarding the tieback of additional reserves. Premier expects the concept to be chosen in September.

Premier’s partner BG Norge has tendered for facilities for use on the Bream field. Responses are expected by the end of July, and concept selection is planned for early September.

07/16/2010 

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