Octabuoy shelved for North Sea Cheviot redevelopment
Petroleum Equity has completed the acquisition, via its Alpha Petroleum investment business, of ATP Oil & Gas (UK) for $133 million.
Parent company ATP Corp., based in Houston, filed for protection in late-2012 under Chapter 11 of the US Bankruptcy Code and started a sale process for its UK subsidiary.
The deal leaves ATP UK free of all debts and liabilities to rebuild its business.
One of the company’s main assets is theCheviot field in the northern North Sea, which has in-place oil of more than 200 MMbbl. It was previously developed in the 1990s as the Emerald field, but was abandoned after four years due to poor performance.
ATP’s redevelopment plan involved what would have been the first application of Moss Maritime’sOctabuoy concept, a semisubmersible floating, drilling, production, and storage unit that can accommodate dry wellheads. Cosco in China had started construction of the platform.
However, according to Bernhard Schmidt of Petroleum Equity, said: “As part of the restructuring, the expensive and overdue Octabuoy development concept for the Cheviot field has been shelved.
“We are now working with management to review the options for developing the field as soon as possible in a manner that best suits its North Sea location; most likely with an FPSO.
“ATP UK currently holds 100% of the Cheviot license. Part of our investment plan is that ATP UK will seek to farm down a portion of its interest in the field in due course.”