Serica Updates on Columbus Ops

BG will perform Front End Engineering and Design Work for a Bridge Linked Platform (BLP) that will connect to the Lomond platform and provide gas and condensate reception facilities for Columbus and Arran production. License holders of the Columbus field, which is located on Block 23/16f and has now shown to extend into the adjacent 23/21 Block, will share the costs of the Columbus portion of the FEED for the BLP. Also under a separate agreement, the partners will share the costs of the Columbus subsea facilities and will submit a new Columbus field development plan to the UK Department of Energy and Climate Change.

Serica was appointed as operator to manage the development process to the point of project sanction on behalf of the Columbus owners. FEED has commenced and work should be completed in the third quarter of 2010. Terms for the use of Lomond as a processing host and export point for the Columbus produced fluids have reached an advanced stage of negotiation, and project sanction is programmed for the end of 2010. The Columbus field is expected to commence production in early 2013.

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