'Numerous Opportunities' for Production Buoys around World
by Jon Mainwaring
|Thursday, November 21, 2013
Numerous opportunities exist around the world for a British production buoy system to be deployed at marginal oil fields, according to new research published from UK-based investment bank Shore Capital.
Shore's report, commissioned by ABT Oil & Gas, stated that more than 600 undeveloped discoveries around the world that are in water depths of up 2,000 feet and which hold reserves of less than 45 million barrels of oil equivalent were suitable for development using production buoys.
ABT – a joint venture between Enegi Oil and ABTechnology – is typically targeting its production buoy concept at marginal fields of less than 20 million barrels. Shore showed that while a typical production buoy costs as little as $140 million to build and install, a conventional FPSO (floating production, storage and offloading) vessel can cost more than $400 million.
"If a marginal field had reserves of 20 million barrels of oil equivalent, we estimate that ABT Oil & Gas could provide unit capex savings of up to $20 per barrel, reducing the UK Continental Shelf average by 65 percent and dramatically improving capital efficiency; the smaller the reserves base, the larger the savings per barrel," Shore's analysts wrote.
ABT farmed into UK central North Sea license P077, which contains the Fyne field, in July this year. The field, which has proved and probable reserves of 9.9 million barrels, is seen as an "ideal opportunity" to show the potential of ABT's production buoy system by the license holders.
More recently, in mid-November, ABT announced another farm-in deal involving two dormant oil fields offshore Ireland.
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