Dana Petroleum plc announced it is one step closer to commencing production from its Western Isles project. The operator, Dana Petroleum, has laid the keel for a new $400 million oil production vessel that will have the capability to produce and store up to 40,000 barrels of oil per day from the North Sea. The project is slated to come online by 2015.
The $1.6 billion project entails developing nine wells on two fields, Harris and Barra, in the Northern North Sea, which is located about 99 miles east of the Shetlands and 7 miles west of the Tern field. The wells will consist of five production and four water injection wells plus two exploration wells tied-back to the new floating production, storage and offloading vessel (FPSO) with oil being exported through shuttle tankers.
"This is a major milestone for Dana and the Western Isles project," stated Dana's Group Chief Executive Marcus Richards, in a press release. "We aim to significantly grow our production over the next five years and this project is vital to helping us achieve that goal."
The Western Isles vessel will displace around 26,000 tons and store up to 400,000 barrels of oil per day. After completing construction of the hull and topsides of the FPSO in China, the vessel will be transported to the North Sea to begin operations in late 2015.
Dana is slated to begin development drilling in August using the Ocean Nomad (mid-water semisub) with subsea installation commencing in the summer of 2014 and FPSO installation in the summer of 2015. First oil is targeted for 2015.
In 2010, the field was deemed commercially viable, which is estimated to hold 65 million barrels of oil equivalents. Early production rates are expected to be about 40,000 barrels of oil per day.
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