LONDON — Harbour Energy is targeting average production this year from its offshore projects of 185-200,000 boe/d, with new wells coming onstream at the J-Area, Beryl and Catcher developments in the UK central North Sea.
The company is projecting total capex of about $1.1 billion, including $200 million for decommissioning (85% in the UK /15% international).
In the UK, Harbour is prioritizing capex for high-return, lower risk, infrastructure-led investment opportunities such as development drilling on Tolmount East and Talbot (southern/central UK North Sea), the Callanish F6 infill well, the Leverett appraisal and the Jocelyn South exploration well.
But it will scale back UK investments and will no longer pursue certain opportunities, including the Total-operated EIH well at the Elgin Franklin complex in the central North Sea and participation in the UK’s 33rd Licensing round.
Harbour took these decisions following the UK government’s recent decision to increase its energy profits levy on North Sea oil and gas companies. The company has also started a review of its UK organization to reflect lower future activity and investment levels.
Elsewhere, Harbour’s main capex spend will be on exploration drilling in the Andaman Sea off Indonesia, following last year’s discovery of the Timpan gas field on the Andaman II license. The company has also secured approval from Indonesia’s government for its offshore Tuna field development.
Finally, Harbour’s two UK carbon capture and storage projects are gaining traction: the Viking development could potentially meet one third of the government’s target to capture and store 30 MMt/year of CO2 by 2030.
Pre-FEED for the project has finished, with new partnerships formed with major customers and CO2 storage capacity independently verified.