New FPSO contract between Centrica and Teekay is expected to prolong the life of the Chestnut field in the UK sector of the North Sea.
Atlantic Petroleum UK Limited, a partner in the field, today revealed that Centrica Energy on behalf of the Chestnut joint venture (Licence P.354) has entered into a further agreement with Teekay Hummingbird Production Limited, to secure the use of the Hummingbird Spirit FPSO until end March 2017 , from the current March 2016, and thereby extend the Chestnut Field life by at least a further year.
The cylindrical FPSO, owned by Teekay, has been operating on Centrica Energy’s Chestnut field in the Central North Sea since 2008 and has produced over 13 million barrels of oil.
Atlantic Petroleum’s CEO Ben Arabo said: “We are delighted that the Chestnut joint venture has been able to agree another contract extension with Teekay for the use of the Hummingbird FPSO. We continue to work with the joint venture to examine ways to even further enhance the recovery from the Chestnut Field in the future.
The Licence P.354 partners are Centrica (69.875% operator), Atlantic Petroleum UK Ltd (15%), Dana Petroleum (15.125%).
The 12-month contract extension with Teekay follows a two-year deal announced in November 2012, and another one-year deal announced in September 2013.