STAVANGER, Norway – DONG Energy is looking at options for its Glenlivet gas discovery West of Shetland. These include establishing a new production hub, depending on the results of exploration drilling in the area.
Glenlivet is a large Palaeocene gas prospect in 1,430 ft water depth in block 214/30a. Following the initial well and sidetrack last year, DONG Energy has been sifting through the resultant data, said DONG Energy E&P President Søren Gath-Hansen at ONS.
“One option would be to tie the gas through the new Laggan Tormore facilities on the Shetland Island, where we are a partner to operator Total. But if you look north of Glenlivet, there is a huge area that we operate which is also gas-prone. This could form the basis for a second development hub.”
Of all the active players West of Shetland, DONG Energy holds the largest acreage, Gath-Hansen points out. “We are in 24 licenses, seven of which we operate. We have participated in 14 wells in the area. 9 of these were explorations wells which led to 6 discoveries.
“We entered this area when others had given up. It’s deepwater, harsh environment, but it’s also the last area on the UKCS where there are still sizeable prospects.”
Last week, Total spudded a well in license P1453 on the Edradour prospect (DONG Energy 25%), close to Laggan and Tormore. DONG Energy is set to partner Chevron in a forthcoming well on the Aberlour prospect next year in P1194.
DONG Energy’s next operated exploration well will be on one of the DONG Energy operated licenses, northeast of Glenlivet, in similar water depths.
Elsewhere, the company is working with Chevron on the Rosebank discovery in much deeper water, close to the median line with the Faroe Islands. A seabed seismic acquisition program has just been completed. “We expect good results, and we are anxious to get the development on Rosebank moving.”
Next year the company will partner Hess in an appraisal well on the Cambo discovery in P1028, and there maybe further activity on OMV’s Tornado gas-condensate field.
“We headed the original task force to interest the industry in creating a joint transportation system in the area. But it proved to be very difficult, as all the companies had their own agendas. Eventually, Total and DONG Energy decided to move ahead independently. The tax allowance the previous UK government introduced for WoS gas infrastructure was also important in making this project fly.
“We are pleased with the progress on the Laggan/Tormore development project and are looking forward to progress on the other exciting opportunities in the WoS area both on our own operated licenses and on the licenses operated by our partners. WoS hold promises to deliver a significant part of the future UK production.”