Maersk Oil, a Danish oil and gas company, is preparing to shut down one of its North Sea assets, a decision that could cause the loss of up to 200 jobs.
Namely, the company’s UK subsidiary, Maersk Oil North Sea UK Limited, is going to approach UK’s Oil and Gas Authority (OGA) seeking approval to cease production from its Janice platform, located in Block 30/17a, approximately 275km (172 miles) east-southeast of Aberdeen.
In addition, the company is considering switching to a 3 weeks on, 3 weeks off rota in the second quarter of 2016.
In an e-mail to Offshore Energy Today, Maersk Oil’s spokesperson said: “As a result of ongoing challenges in the market and Maersk Oil’s cost transformation process, the UK business has announced consultation on a proposed move to a 3 weeks on, 3 weeks off offshore rotation, to be implemented in the second quarter of 2016.
“The business will also approach the OGA to seek approval to cease production from its Janice installation in the second or third quarter of 2016, moving the business from three operational asset areas to two. All options will be explored through consultation to minimise impact on positions, but it is possible that an estimated 200 onshore and offshore roles may be affected as a result of the proposals outlined today.”
Maersk’s spokesperson added: “This is a very unsettling period for colleagues. The business will offer as much support throughout the process as possible and remain focused on maintaining safe and reliable operations.”
Maersk Oil has had a presence in the UK since 2005 and operates offshore installations that produce from the Gryphon, Maclure and Tullich fields (Gryphon FPSO), Dumbarton, Balloch and Lochranza fields (Global Producer 3 FPSO) and from the Janice, Affleck and James fields (Janice FPU)
The Janice development comprises producing wells, subsea structures, umbilicals and risers connected to the Janice floating production unit (FPU) which is owned by Maersk Oil. The hull is 30 years old, having been converted from an accommodation rig in 1998. First hydrocarbons were produced in the third quarter of 1998.
The Janice FPU processes oil and gas from the Janice Field itself and the James and Affleck Fields which are tied‐back subsea to the FPU. Oil is exported via the J block pipeline to Norpipe and on to Teesside. Through arrangement with the Affleck Owners, gas is exported via Clyde and Fulmar into the SEGAL System.
Offshore Energy Today Staff