North Sea Catcher Area Development Sells First Export Cargo
Premier Oil revealed Wednesday that the first export cargo of oil from the North Sea Catcher Area development, containing approximately 500,000 barrels, has been sold at a premium to Brent.
The second cargo, which is scheduled for the third week of February, has also been sold at a premium, Premier Oil said.
Oil and gas analysts at GMP FirstEnergy described market reaction to the development as positive.
“We did not assume Catcher oil would capture a premium,” the analysts said in a brief research note sent to Rigzone.
The Catcher Area development came online on December 23, 2017. To date, four production wells – two from the Catcher field and two from the Varadero field – have been brought online.
Initial rates from these four producers totalled in excess of 60,000 barrels of oil per day (bopd), but output is currently being deliberately constrained at an average of 20,000 bopd while the final commissioning of gas processing modules on the BW Catcher FPSO is completed.
“Once the gas systems, including gas export, are fully available, production will be brought on-stream from the Burgman field and full production from the Catcher Area is planned to increase to 60,000 bopd. This remains on schedule for Q2 2018.” Premier Oil said in a company statement.
With the planned output ramp up at Catcher, Premier Oil has raised its production guidance to between 80 and 85,000 barrels of oil equivalent per day (boepd) in 2018. The company achieved full year production of 75,000 boepd in 2017, which was in line with guidance and five percent up on 2016.
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