Dana $1.6bn oil and gas development gets go ahead
A $1.6 billion project to develop two oil fields in the North Sea, led by Aberdeen-based Dana Petroleum, was given the go-ahead today.
The Department of Energy and Climate Change has approved the Western Isles project which will develop two discovered oil fields called Harris and Barra in the Northern North Sea, 160km east of the Shetlands and 12km west of the Tern field.
The nine-well Western Isles development is expected to produce more than 40,000 barrels of oil equivalent, adding more than 30,000 barrels (net) to Dana’s daily production when it comes onstream in 2015.
The green light for this project follows tax measures announced by HM Treasury during 2012 that are helping to support and increase investment in the North Sea.
Dr Marcus Richards, Dana’s Group Chief Executive, said: “The Western Isles project is at the heart of our growth strategy. Unlocking the potential of these new fields is a significant milestone as we aim to double our production to 100,000 barrels a day by 2016.
“We welcome the announcements by the Treasury this year to support oil and gas companies operating in the North Sea. This will help create a brighter future for the industry.”
The Economic Secretary to the Treasury, Sajid Javid said: “The North Sea is a vital national asset, with oil and gas production supporting a third of a million jobs. That is why this Government has announced a range of tax measures expected to generate billions of new investment and create jobs. Dana’s announcement today is a further endorsement of that strategy.”
John Hayes, UK Minister of State for Energy and Climate Change said: ”I am delighted to announce the go-ahead for this project which will bring new jobs and create new opportunities for UK companies to compete for key parts of the work. Dana Petroleum has really demonstrated its commitment to the North Sea and in doing so is playing its part in helping to secure the UK’s future energy needs.”
The Harris and Barra fields are estimated to contain recoverable oil reserves of over 45million barrels.
The Department of Energy and Climate Change also approved Dana as operator of the Western Isles development project which is a joint venture between Dana with an equity share of 77%, and Japanese upstream exploration and production company Cieco, which holds the remaining 23%.
About Dana Petroleum plc
Dana Petroleum plc is a $4 billion oil and gas business with operations in the UK, Egypt, Norway, The Netherlands and Africa, producing 60,000 barrels of oil a day. Our ambition is to grow to become a leading international oil and gas company operating in Europe, Africa and the Middle East. We will invest more than $5 billion over the next five years to more than double the size of the company.
About Dana Petroleum UK
Our portfolio in the UK consists of exploration, production and development activities throughout the Northern, Central and Southern North Sea, West of Shetland, and in the Moray Firth. We hold a total of 20 operated and 35 non-operated licences acquired through successful licensing rounds, acquisitions and asset farm-ins. Our average annual production in 2011 was 33,000 barrels of oil per day.
Our strategy is to continue to invest in our UK exploration portfolio and convert exploration prospects into reserves and production. In 2012 we plan to drill five exploration wells and participate in the UK 27th Licensing Round.
About the Western Isles Project
The Western Isles Project (Dana 77% and Cieco 23%) will develop two discovered oil fields called Harris and Barra in the Northern North Sea, 160km east of the Shetlands and 12km west of Tern field. It involves a subsea development of at least five production and four water injection wells plus two exploration wells tied back to a new build floating production, storage and offloading vessel (FPSO) with oil export using shuttle tankers.
Drilling is expected to begin 2013 with subsea installation in summer 2014 and FPSO installation summer 2015. Plateau production is expected to be around 40,000 boepd, adding more than 26,000 boepd to Dana’s UK production. First oil is expected in 2015 and the estimated field life is 15 years.
Western Isles Development project maps (click for large version)
Project factsheet PDF (0.6MB)
FPSO schematic PDF(0.2MB)
For further information contact:
Director of Group Communications and External Affairs
+ 44 (0)1224 616100
Group Corporate Communications Manager
+ 44 (0)1224 616100