Faroese oil company Atlantic Petroleum is looking at options for the Orlando field in the UK sector of the North Sea after a deal to sell its stake to Bridge Petroleum fell through last Thursday.
Earlier this year, Atlantic Petroleum entered into a sale and purchase agreement with Bridge Petroleum for its 25% interest in the Orlando development. Last week, on November 17 Atlantic Petroleum was notified by Bridge Petroleum that it was unable to complete the agreement.
Atlantic Petroleum said in its 3Q 2016 report on November 24 that the company holds a ‘key position’ with regards to the UK Orlando field which means that it holds its 25% equity in the field until further notice, and is in discussions with stakeholders about the asset. Atlantic Petroleum is also in dialogue with its funder, London Oil and Gas, on the best way forward on the Orlando asset.
According to the company, the aim is to secure a deal where the company retains value in the project either through participation or through securing a share of the future revenue from Orlando. First oil from the field is now targeted for the end of 2017.
Ben Arabo, Atlantic Petroleum CEO, commented: “Our biggest remaining asset is Orlando, and the aim is to secure a commercial deal on the Orlando project before year end, either through participation or through securing a share of the future revenue from Orlando.”
The Orlando field is located in the UK North Sea in Block 3/3b at a water depth of 142 meters. Sanctioned in February 2013, Orlando was meant to be developed as a subsea tie-back to the Ninian central platform in the Northern North Sea with first production expected in 4Q 2016.
However, Iona Energy, the operator of the Orlando Field, announced in November 2015 that its financing for the field had fallen through and that the company was likely to enter administration; subsequently confirmed in January 2016 leaving the future of the Orlando field uncertain.
Offshore Energy Today Staff