BP Commits to New North Sea Developments
BP plc has committed to two new North Sea developments, which are expected to produce 30,000 barrels gross of oil equivalent per day at peak production.
Alligin, a two-well development west of Shetland, will be tied back to BP’s Glen Lyon floating, production, storage and offloading vessel, and Vorlich, another two-well development in the central North Sea, will be tied back to the Ithaca Energy-operated FPF-1 floating production facility. Both fields are expected to come on stream in 2020.
“BP is working hard to modernize and transform the way we work and a key focus of this is maintaining safety while optimizing the pace at which we deliver activity,” incoming BP North Sea regional president, Ariel Flores, said in company statement.
“Through our Alligin and Vorlich developments we are simplifying and accelerating the stages of delivery to improve project cycle time, reduce costs and, importantly, add new production to our North Sea portfolio,” Flores added.
“These projects follow on from a period of record investment by BP in the North Sea, which helped deliver our Quad 204 project last year and will deliver our Clair Ridge project, which is planned to start-up later in 2018,” the BP representative continued.
Commenting on BP’s decision to sanction the development of the Vorlich and Alligin fields, Kevin Swann, North Sea senior research analyst at Wood Mackenzie, said it was welcome news for the region.
“Hot on the heels of Shell sanctioning the Penguins re-development, this is further evidence that the majors are not finished in the UK yet,” Swann said in a statement sent to Rigzone.
“BP’s Vorlich and Alligin are both relatively small fields, which signals a change of tack from BP after its massive West of Shetland projects in recent years, but such large-scale endeavours are few and far between in the UK. Smaller fields continue to be the lifeblood of the shelf, so it is encouraging to see a major like BP getting involved” he added.
“We always expected 2018 to be a big year for UK project sanctions and early signs are encouraging. If the stars align, we could see as many as a dozen more by the end of the year,” Swann continued.
BP holds a 50 percent operated interest in Alligin, with Royal Dutch Shell holding the remaining 50 percent stake. Vorlich is also operated by BP, which owns a 66 percent interest. Ithaca Energy holds the remaining 34 percent stake in Vorlich.
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