Phillips Brings Jade Field On Stream

Phillips Petroleum Company announced that the Jade field in the U.K. sector of the North Sea has begun production. The field is currently producing 60 million cubic feet of gas per day and 4,500 barrels of oil per day. Plateau production rates of approximately 200 million standard cubic feet of gas per day and 16,000 barrels of oil per day are expected by the third quarter of 2002, once the remaining initial development wells have been drilled.

Henry McGee, president of Phillips' European Division, said: "The success of the Jade project is an important signpost in the history of the North Sea, confirming that high-pressure/high-temperature fields like Jade can be safely and economically developed. Now that we have the platform in place and producing oil and gas, we plan to drill the remaining development wells and test the deep potential in the Jade field by drilling an exploration tail on one of the wells.

"We will continue to pursue opportunities for further investment in Jade, with the possibility of a second phase to exploit other potential oil and gas accumulations. "The UK Central North Sea, especially Quad 30, is a core area for our UK division's future business, and this platform provides a valuable extension to our existing infrastructure at Judy," he continued. "We have a number of interests and discoveries in the region that could be developed through this infrastructure and which are an important part of our strategy to maximize opportunities in the area."

The Jade field, located in block 30/2c of the UK North Sea, was discovered in 1996 and confirmed by an appraisal well in early 1997. The field has been developed using a Normally Unattended Installation, connected by a 16-inch multi-phase pipe-in-pipe pipeline to the Phillips-operated Judy platform, 12 miles south of Jade. Following the initial processing of Jade production on Judy, gas will be transported through the CATS pipeline to the CATS terminal on Teesside and oil through the Norpipe pipeline to Phillips' Seal Sands terminal, also on Teesside.

Phillips is operator of the Jade field with a 32.5 percent interest. The company's co-venturers are: BG Group, 35 percent; Texaco North Sea U.K. Company, 19.93 percent; Agip (U.K.) Limited, 7 percent; and OMV (U.K) Limited, 5.57 percent.