North Sea oil and gas player Decipher Energy is reportedly expected to start production from the Orlando oil field in the first quarter of 2019.
This is according to Atlantic Petroleum, a company which sold its 25 percent stake in Orlando to Decipher back in March 2017.
Under the terms of the sale Atlantic will receive a 2 percent revenue share of the total Orlando production revenue until the field has produced 5 million barrels of oil.
After that, the revenue share to Atlantic Petroleum increases to 4.35 percent of the total field revenue.
“Production from the Orlando field… is now expected to commence before the end of the first quarter this year. This field’s sale agreement includes payment of royalties from the Operator on its oil production to Atlantic Petroleum. Accordingly, these royalty revenue payments will commence in 2019 as planned,” Atlantic Petroleum said on Monday.
To remind, Atlantic Petroleum and the former operator Iona Petroleum back in 2013 sanctioned the Orlando development, with plans to develop the field as a subsea tie back to the Ninian Central Platform in the Northern North Sea.
Under the original plan, the field had been expected to go online in 2014. This, however, did not happen as Iona eventually said the financing for the field had fallen through and that the company entered administration.
Found by Chevron in 1988
The Orlando Field is located in UKCS Block 3/3b, between the Ninian, Strathspey, Brent and North Alwyn Fields.
The Orlando Field was discovered by well 3/3-11 by Chevron in 1988-89. The well encountered a 160ft oil column within a tilted fault block structure in Middle Jurassic Brent Group reservoir sandstones. The interpreted oil/water contact is placed at 11,650ft TVDSS. The well tested at a rate of 2,800 bopd, 32° API oil from perforations in the Tarbert Formation. Appraisal wells 3/3b-13 and 13Z were drilled by MPX in 2011/2012 in the southern part of the field.
According to info on Decipher Energy’s website, the Orlando Field Development Plan is still the same as the one originally envisioned by Atlantic and Iona.
It consists of the subsea tie-back of a single horizontal production well, geosteered within the Tarbert Formation of the Brent Group, to the CNRI operated Ninian Central Platform, 11 kilometers to the southwest. The field is expected to produce at a plateau rate of 10,500 bopd with base case reserves of 8 MMboe.
Decipher holds a 100% interest in the Orlando Field.
Offshore Energy Today Staff