EnQuest looks at second phase offshore oil production for Alma/Galia in North Sea

EnQuest is to widen the scope and specification of the Alma/Galia development project in the UK North Sea.

Offshore staff

LONDON -- EnQuest is to widen the scope and specification of the Alma/Galia development project in the UK North Sea. The aims are to extend field life, optimize operating costs, and facilitate a potential second phase.

These changes, assuming partner approval, should lengthen theFPSO’s service life by up to 15 years, and lift first-phase recoverable reserves to 34 MMBoe.

Associated improvements, which include adding swivel capacity to the FPSO, would increase capex for the project by around $200 million. This includes $100 million relating to compliance with recent UK offshore marine code changes, requiring upgrades to the mooring system and strengthening of the swivel and vessel hull.

Ongoingfirst-phase operations have been impacted by weather and other cost factors, pushing up capex by around $100 million to $1.2 billion. First oil from Alma/Galia remains on track, however, for this fall.

EnQuest's board has also sanctioned the next phase of theThistle field late life extension project in the UK northern North Sea, which it claims was made possible by the UK’s newly introduced Brown Field Allowances program.

David Heslop, general manager for EnQuest in Aberdeen, said: “Before EnQuest acquired Thistle in 2010, production was declining and, coupled with aging infrastructure, it was approaching the point where production may have stopped.

“As a result ofour investment so far, which has included facilities and safety systems upgrades, a major rig reactivation program, and drilling of five new wells, production has significantly increased. With the assistance of the brownfield tax allowance, we are now able to embark on the next phase of Thistle’s late life extension program, realizing reserves of 35 MMboe and extending field life.”

EnQuest’s program is intended to simplify and streamline processes in order to create a more reliable production environment. It involves installation of a 30 MW power generation turbine, a new process control safety system, and topsides integrity work.

The program will cost around $266 million, with contracts set to be awarded to about 30 UK companies.

2/5/2013

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