UK-based oil and gas development and production company EnQuest has said that its Kraken project in the UK North Sea is on track to achieve first oil in the first half of 2017.
In its 2015 results statement from March 17, the company said it would continue with cost cutting efforts in 2016.
Furthermore, EnQuest said in its annual report that following the departure of the Kraken FPSO from dry dock in December 2015, work is continuing on the marine systems.
The FPSO remains on schedule to leave Singapore in 2016 for commissioning and hook up.
EnQuest also noted that, in addition to the full project capex having already been reduced by c.$300 million, it had made a further c.$125 million reduction through the optimisation of the drilling programme. This means that overall full cycle project costs have now been reduced by c.$425 million from the $3.2 billion at sanction, a reduction of c.13%.
As a result of the latest reduction, a total of 23 wells will now be drilled from three drill centres, instead of 25 wells from four drill centres, the company said.
EnQuest further said that the 2016 drilling programme would be focused on drill centres one and two and that it was currently ahead of schedule.
Kraken is a large heavy oil accumulation in the UK North Sea, located in the East Shetland basin, to the west of the North Viking Graben; approximately 125 km east of the Shetland Islands. The field is estimated to contain approximately 140million barrels of gross oil reserves.
EnQuest is the operator of the project with 70.5%, while its partner Cairn Energy holds 29.5% interest.
Offshore Energy Today Staff