Hurricane Energy has taken the Final Investment Decision on the development of the Lancaster Early Production System in the UK sector of the North Sea.
In an operational update on Thursday, the company said that Lancaster first oil was expected in the first half of 2019, following completion of the equity placing and convertible bond offering announced in June 2017.
“Hurricane and its key contractors have proceeded with procurement, fabrication and contracting activities related to the EPS on the Lancaster field. The Company, now fully-funded to reach first oil, remains on track for first oil in 1H 2019,” Hurricane said.
According to Hurricane Energy , agreements now effective with Bluewater Energy Services for upgrade, lease and operation of the ‘Aoka Mizu’ FPSO unit. The unit is now on tow to Dubai for upgrade work.
It is expected to arrive by early October. The mooring buoy is also being fabricated in Dubai, where work has commenced.
Rig contract with Transocean
Furthermore, Hurricane has entered into a contract with Transocean for the Paul B. Loyd Jr. semi-submersible drilling rig to complete the previously drilled Lancaster 205/21a-6 and 205/21a-7Z horizontal production wells, starting 2Q 2018.
Also, TechnipFMC has started procurement and fabrication of the main subsea components of the development including subsea umbilical, risers and flowlines “SURF” and subsea production system “SPS”. Subsea installation activities at Lancaster are scheduled for summer 2018, in advance of the planned arrival of the ‘Aoka Mizu’.
A TechnipFMC vessel has recently completed a further seabed survey as part of the planning process for boulder clearance around the area planned for SURF installation.
The company said making good progress with the regulatory authorities in relation to the approval of Company’s Field Development Plan (“FDP”) and associated consents and permits for the Lancaster EPS development. Approval is expected shortly, with no impact to overall project schedule anticipated.
Robert Trice, Hurricane Energy Chief Executive, said he was delighted that all operational work streams were proceeding on track for delivery of the project within the target timeline of first oil in 1H 2019.
“Successful completion of the Fundraising allowed the Company to move ahead with the upgrade of the FPSO, fabrication of the buoy, and procurement of the subsea components for installation work to begin next summer. We greatly appreciate the contributions of our key contractors and partners, Bluewater Energy Services and TechnipFMC, in progressing the project at pace.
“The Lancaster EPS is not only an essential step in planning for the full field development of the Company’s Rona Ridge assets, but also represents a substantial development in its own right, with planned production of 17,000 barrels of oil per day.
“We look forward to providing further updates as we move forward with engineering, procurement, installation and commissioning (EPIC) activities; and once regulatory approval is obtained,” Trice said.
The Lancaster licence has combined 2P Reserves and 2C Resources of 523 million barrels. In addition, the company has 205 million barrels of oil equivalent on its Whirlwind licence. During the 2016-2017 drilling campaign the company made two significant discoveries at Halifax and Lincoln prospects, indicating that the Greater Lancaster Area and the Greater Warwick Area have the potential to be two large accumulations.