North Sea Culzean Field Starts Production
Total revealed Tuesday that it has started up production from the offshore UK Culzean gas condensate field.
Culzean will have a plateau production rate of 100,000 barrels of oil equivalent per day (boepd), according to Total, which highlighted that the field will account for around five percent of the UK’s gas consumption.
Culzean was discovered in 2008 by Maersk Oil and contains resources estimated between 250 and 300 million barrels of oil equivalent. Gas from Culzean is exported via the CATS pipeline and the UK National Grid.
“The Culzean project is delivered ahead of schedule and more than 10 percent below the initial budget, which represents CAPEX (capital expenditure) savings of more than $500 million,” Arnaud Breuillac, president of exploration and production at Total, said in a company statement.
“Culzean is a good example of our efforts to upgrade our portfolio in the North Sea over the last years, notably by bringing Total and Maersk Oil together. The Culzean field is located in the Central Graben area, close to the Elgin-Franklin fields, also operated by Total, thus generating synergies,” he added.
Glenn Morrall, a research associate with Wood Mackenzie’s North Sea upstream team, said Culzean is the third UK project to start production this year but the biggest “by a long way”.
“It shows that there is still appetite for big developments in UK waters,” he added.
The Wood Mackenzie representative warned that there is some risk though.
“Culzean gas is high pressure high temperature (HP/HT), which makes it more challenging to operate successfully,” he said.
“However, Total brings a wealth of experience in operating HP/HT fields, for example at the nearby Elgin-Franklin fields,” Morrall continued.
Total operates Culzean with a 49.99 percent participating interest, alongside BP, which holds a 32 percent stake, and JX Nippon, which holds an 18.01 percent interest.
Total has been present in the UK for over 50 years and employs over 2,000 people in the region. The company is one of the country’s leading oil and gas operators, with equity production of 179,000 boepd last year.
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