ABERDEEN, UK – Faroe Petroleum has conditionally agreed to acquire a further 13.9935% interest in the producing Blane field in the UK North Sea from JX Nippon Exploration and Production (U.K.) for $5.25 million.
The field, discovered in 1989, is on the Central Graben of the UK continental shelf, and extends into the Norwegian sector.
Production started in September 2007 from a Tertiary Palaeocene Forties sands reservoir with a structural closure via a subsea tieback to the Aker BP-operated Ula platform (Faroe 20%), 34 km (21 mi) to the northeast in Norwegian waters.
Currently two horizontal production wells with gas lift and one water injection well are in service.
The 13.9935% interest in Blane derives from a 17.0653% share of UK license P111 covering block 30/3a (upper).
Subject to regulatory and partner approvals Faroe expects to complete the transaction later this year. Production from Blane is presently suspended to accommodate various subsea works.
Repsol Norge operates, the other partners being Dana Petroleum (BVUK) and Repsol Sinopec Resources UK.