Chestnut approved

Offshore staff

(UK) - Britain's Department of Trade and Industry has approved the development plan for the Chestnut oil field in UK North Sea block 22/2a.

The field, operated by Venture Production, will be produced through two subsea wells tied back to the new concept Sevan Marine SSP300 cylinder-shaped floating production vessel. Facility installation is expected in 2007.

Venture claims this concept is significantly less capital intensive than a conventional tieback to an existing host platform, and like a ship-shaped FPSO, can also be re-used.

One of the wells will be 22/2a-11x, drilled in 2001, the other being a water injector, which will likely be drilled in the second half of next year. Venture estimates Chestnut's recoverable reserves at just under 10 MMbbl.

The field was discovered in 1986 and has been extensively appraised, the producer candidate having been employed in an extended well test via theCrystal Ocean vessel. This test yielded 1 MMbbl of oil, and helped reduce uncertainty over reserves and reservoir deliverability.

11/29/05