LONDON — Britain’s North Sea Transition Authority has awarded Serica Energy’s subsidiary Tailwind Energy Chinook 100% interest in Block 29/2a under the UK’s 33rd Offshore Licensing Round.
The award remains subject to the execution of license documentation.
Block 29/2a contains the decommissioned Kyle oil field, discovered by Mobil in 1993 and later developed, along with the Banff Field, as a tieback to the Petrojarl Banff FPSO.
Kyle ceased production in June 2020 with the host FPSO at the time subsequently removed. Serica will have no obligations connected to the prior decommissioning.
Over an initial two-year period, Serica will undertake studies to determine the feasibility of redeveloping Kyle as a subsea tieback to the Triton FPSO via the Bittern field facilities.
Serica has a 46.42% interest in the FPSO and a 64.63% interest in the Bittern Field, both operated by Dana Petroleum. The company’s mid-case estimate of recoverable resources from a redevelopment is about 9 MMbbl of oil.
Serice CEO Mitch Flegg said the company looks for opportunities to maximize the use of existing offshore infrastructure associated with its Bruce and Triton production hubs.
“This license award adds another potential project to our hopper of near- and in-field opportunities," he said. "The decision whether to proceed with the re-development of Kyle will depend on the results of our studies and the fiscal and regulatory situation at the end of the initial two-year term of the license.”