Premier nears awarding contracts for North Sea Catcher

Premier Oil estimates capex for its Catcher area field development in the UK central North Sea at $2.2 billion.

Feb 27th, 2014

Offshore staff

LONDONPremier Oil estimates capex for its Catcher area field development in the UK central North Sea at $2.2 billion.

The project calls for a subsea tieback of the Catcher, Varadero, and Burgman fields to an FPSO.

Reservoir modeling is complete and the well locations and drilling sequence have been optimized.

The partners have evaluated tenders for the well systems, christmas trees, and a heavy-duty jackup.

Continuous drilling of up to 14 producers and eight water injectors will start in 2015 and continue beyond first oil.

Subsea front-end engineering design has also been completed. Premier received the engineering, procurement, construction, and installation bids for the subsea facilities in October and aims to award contracts in April.

Tenders are under evaluation from three contractors for the FPSO construction and operation contract and a preferred bidder has been identified. Premier has issued a draft development work program to its Catcher area partners and has submitted the field development plan to Britain’s Department of Energy and Climate Change. The company aims to secure sanction this spring.

Reserves targeted under the initial development scheme are 92 MMboe, with provision for the tieback of additional discoveries at a later date.

Premier’s 40-MMbblSolan field project west of Shetland is expected to come onstream in 4Q at an initial rate of 24,000 boe/d following ramp-up.

Drilling of the two producer and two water injector wells started last April, with operations then suspended in November for the winter.

Solan’s subsea oil storage tank is expected to sail from the Drydocks World shipyard in Dubai in mid-2014.

Construction of the topsides and jackets is progressing at Burntisland Fabricators in Fife, eastern Scotland, with sail away and installation by Heerema crane vesselThialfto follow in mid-year.

Premier anticipates hook up and commissioning prior to the end of the summer weather window.

In the Norwegian North Sea, the company expects a formal concept selection decision forBream field this quarter followed by an investment decision around year end.

This will likely involve an FPSO with subsea production and water injection wells, with a 17-km (10.6-mi) tieback of the Mackerel field to the Bream facilities.

During the development phase the partners plan an exploration well on the adjacent Herring prospect. If successful, this too could be tied in.

02/27/2014

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