BP Brings Quad 204 Project Online
BP plc, on behalf of co-venturers Shell and Siccar Point Energy, announced Monday the commencement of first oil from the redeveloped Schiehallion Area, following the completion of the Quad 204 project in the west of Shetland region, offshore UK.
Schiehallion and the adjacent Loyal fields were first developed in the mid-1990s and have produced nearly 400 million barrels of oil since production started in 1998.
With the fields’ redevelopment through the Quad 204 project, BP and co-venturers expect to unlock a further estimated 450 million barrels of resources, extending the life of the fields out to 2035 and beyond.
Production from the project is expected to ramp up through the remainder of 2017 to a plateau level of 130,000 barrels of oil per day.
Quad 204 is the third of seven upstream major projects BP expects to bring online in 2017, following the earlier start-ups of the Trinidad onshore compression project and the Taurus/Libra development of the West Nile Delta project in Egypt.
New projects starting up through 2016 and 2017 are expected to deliver 500,000 barrels of oil equivalent per day in net new production capacity for BP by the end of this year.
With further projects beginning production through to the end of the decade, BP expects approximately 800,000 boepd production from new projects by 2020.
“The start of production from Quad 204 - one of the largest recent investments in the UK - is an important milestone for BP, marking a return to growth for our North Sea business,” Bob Dudley, BP Group chief executive, said in a company statement.
Industry trade body, Oil & Gas UK, welcomed the latest development from BP.
“This is excellent news and another positive endorsement of the potential the UK Continental Shelf still offers with the right investment,” Deirdre Michie, chief executive of Oil & Gas UK, said in a statement sent to Rigzone.
“It’s also extremely heartening to see one of the original explorers of the basin using new, ambitious approaches and pioneering technology to help lead a revival in production. As well as being a welcome boost for the hard pressed supply chain, the announcement from BP and co-venturers Shell and Siccar Point Energy, proves that our faith in the long term health of the basin is well founded,” Michie added.
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