LONDON – Premier Oil’s 2Q UK production averaged 45,500 boe/d, up 105% on the corresponding period last year.
The biggest contributor was theHuntington field in the UK central North Sea, averaging 15,600 boe/d, 36% above budget. This was due to higher well flow rates following improved reservoir management, and strong operating efficiency.
Premier is in talks with Teekay, owner of the field’s FPSO, on extending the firm charter period for Huntington beyond April 2018.
A successful well intervention program at theBabbage field in the southern gas basin meant that production was above expectations at 3,200 boe/d.
At the same time, operating costs came down after the offshore platform transitioned to a not permanently attended installation in April.
Production from Premier’sSolan field west of Shetland averaged 7,300 boe/d, below expectations, with the first production well (P1) being shut in following the failure of its existing electric submersible pump (ESP).
Currently P1 is producing strongly on free flow without the need for workover assistance. Premier continues to review options for improving output from the field, including increasing water injection into the reservoir and potentially more wells in 2019.
As for new field developments,Catcher in the UK central North Sea remains on track for first oil later this year. Topsides and turret commissioning work on the FPSO is advanced with construction of the hull, and work on the living quarters, now complete.
As much commissioning work as possible should be completed at the yard in Singapore prior to sail away of the vessel, now anticipated during August.
At the offshore location, 11 wells have so far been drilled and subsea work to tie in the four recently completed Varadero wells has finished. The recently drilled Burgman production well was delivered ahead of time and budget.
Total capex looks set to come in at $1.6 billion, 29% down on the estimate at project sanction.
Off/onshore front-end engineering design continues for the company’sTolmount field development in the southern sector. Tendering of the major project scopes should begin soon, with development sanction likely to follow during the first half of 2018.
Premier continues to seek ways of reducing upfront capex and is engaged with an infrastructure partner on possible funding of the development. At the same time, subsurface studies continue on Tolmount East and Tolmount Far East, ahead of possible appraisal drilling.
Drilling has started of a lateral side track for production testing, after successful completion of the vertical pilot hole.
Next year, Premier expects to drill an appraisal well on the Cobra field, situated close to Babbage.
Finally, the company has sold its interest in the Austen discovery, and is working on further divestments of its 30% interest in the Esmond Transportation System in the southern gas basin and its interest in the Arran field in the central North Sea.