BP Receives Approval to Develop Farragon Discovery

BP has received approval from the UK Department of Trade and Industry for the $130 million (£74 million) development of the Farragon oil discovery. The co-venturers in this new development investment are BP (50% and operator), Eni (UK) Limited (30%) and Nexen Inc. (20%).

Farragon is located 140 miles northeast of Aberdeen in BP operated block 16/28 in the central North Sea, in water depths of 350 feet. The development of the field will involve the drilling of two horizontal wells and the installation of a subsea manifold which will be tied back to the existing Cyrus subsea manifold.

Oil produced from Farragon will be processed through existing facilities on the Andrew platform and onwards to the Forties Pipeline System. First oil from Farragon is expected late 2005.

GlobalSantaFe's semisub, the GSF Arctic IV, has been contracted for work on the project. The contract for subsea installation was recently awarded to Subsea 7.

Tim Summers, Director & Business Unit Leader for BP's North Sea business said, "Farragon is an exciting part of BP's 2005 activity plans, and our team have done a fantastic job in bringing the project from exploration discovery to development in only 18 months. This investment will help to maximize recovery of oil and gas from the North Sea, and demonstrates what can be achieved through enthusiasm, innovation and cooperation in a stable business environment."

  • Farragon was discovered in 2003
  • The discovery is 9 miles from the BP operated Andrew platform
  • The Farragon discovery was made in April 2003 and the time from exploration to commencement of development was only 18 months
  • Peak production from Farragon is expected to be around 20,000 barrels of oil per day
  • Nexen Inc.completed its purchase of EnCana Corporation's UK subsidiary, EnCana (UK) Limited, including its interests in Farragon, on December 1, 2004.
  • Cyrus is a small oilfield located 7 miles to the north of the Andrew platform which is tied back to the Andrew platform via a subsea manifold