Dana Petroleum has entered the detailed engineering design phase on the $1.5 billion Western Isles development project in the UK North Sea.
The Western Isles project 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 development is expected to add more than 26,000 barrels of oil equivalent to Dana’s daily production.
Paul Griffin, Dana’s UK Managing Director said:
“Western Isles is a very important project for Dana and a key part of our strategy to double daily production to more than 100,000 barrels of oil equivalent by 2016. Work on the detailed engineering design will begin immediately and the project is expected to receive full approval from the UK Government towards the end of 2012, with first oil production expected in 2015.”
Charles Hendry, UK Minister of State for Energy and Climate Change said:
“This is great news for UK energy security and UK jobs and joins a growing list of major North Sea projects announced recently. Dana’s procurement strategy will create opportunities for UK companies to compete for key parts of the project. I’m delighted that Dana has demonstrated its commitment to the UK North Sea and we look forward to receiving the final development proposals.”
The Harris and Barra fields are estimated to contain recoverable oil reserves of 45million barrels, with upside potential in the area.
The Western Isles development project is a joint venture between Dana with an operating equity share of 65%, and Japanese upstream exploration and production company Cieco, which holds the remaining 35%.
Western Isles Development project maps (click for large version)
About Dana Petroleum plc
Dana Petroleum plc is a $3 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 65% and Cieco 35%) 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.
UK Government sanction is expected towards the end of 2012 followed by placement of the major contracts. 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.