Premier Oil, a UK-based oil company, has further lowered the capex for its Catcher development in the UK North Sea. The forecast now says capex will be 29 percent lower than at sanction.
Premier Oil said in an update on Thursday that the total capex is now forecast at $1.6 billion, which is $100 million less than the forecast from November.
The Catcher field project is operated by Premier Oil with a 50 percent interest, while Cairn Energy, MOL Group, and Dyas are partners.
The development entails subsea wells on the Catcher, Varadero and Burgman fields which will be tied back to the BW Offshore-owned FPSO. The oil will be offloaded by tankers while the gas will be exported through the SEGAL facilities.
Premier said that the Catcher project is still on target to start oil production later this year. Eight development wells have completed, and all came in at or better than prognosis regarding reservoir quality and deliverability, the company said.
Most recently, the second well on the Varadero template (VP3) was completed in December and achieved eight kboepd on clean up. Due to these strong well results and well placement optimization, the well count required to deliver the base plan has reduced from 22 to 20 wells, significantly reducing the forecast development cost, Premier explained.
Subsea campaign, FPSO sail-away
Premier completed the installation of all Catcher subsea equipment in 2016. Only short subsea campaigns, beginning in June, will be required in 2017 to tie-in the new wells drilled and to support the hook up of the FPSO.
The last of the topside modules was successfully lifted onto the FPSO in November, and good progress was made on the integration of the topsides and turret and with the early stages of yard-based pre-commissioning. The company is now focused on final mechanical completion and pre-commissioning work scopes.
The sail-away date of the FPSO from Singapore is expected to be mid-year.
The company added that production in 2017 from Premier’s existing producing assets is expected to be around 75 kboepd, before any contribution from Catcher and adjusted for revised lower Solan production. The extent of the contribution to 2017 production from Catcher is dependent upon the timing of first oil.
Tony Durrant, CEO of Premier, said: “The Catcher project continues to progress well and will provide another step change in production, generating enhanced, tax-free cash flows for the Group.”
Offshore Energy Today Staff