UK oil and gas giant BP, on behalf of the Schiehallion co-venturers Shell and OMV, announced on Thursday that the new Glen Lyon floating production storage and offloading (FPSO) vessel has started sea trials as it begins its journey towards the west of Shetland.
The FPSO will serve as the hub for the 450 million barrel Quad 204 development in the North Sea.
The new FPSO is a key element of the multi-billion pound Quad 204 project, which is re-developing the Schiehallion and Loyal fields, extending production out to 2035 and possibly beyond.
“This important milestone is consistent with BP’s strategy to sustain a competitive, high quality business in the North Sea region,” said Trevor Garlick, Regional President for BP’s North Sea business. “The Schiehallion and Loyal oil fields are established assets with a strong future and through this investment, we and our co-venturers Shell and OMV are taking some significant steps to maximise the greater potential we now see in these fields.”
The project involves connecting and commissioning the new FPSO, the drilling of several new production and injection wells, and upgrading the subsea (seabed) pipeline, manifold and wellhead infrastructure that will enable the full development of the reserves.
Schiehallion and Loyal have produced nearly 400 million barrels of oil since production started in 1998. The Quad 204 development aims to access the remaining estimated 450 million barrels of resource still available.
The new Glen Lyon FPSO measures 270 metres long by 52 metres wide. It will be able to process and export up to 130,000 barrels of oil a day and store up to 800,000 barrels.
BP owns 36.3%, with other interests as follows: Shell 54.03%, OMV 9.67%.