LONDON – Premier Oil’s board has sanctioned development of the Solan field in block 205/26a west of Shetland. The company expects to receive UK government approval shortly for the $850-million project.
Following planned first oil in 2014, Solan should produce around 42 MMbbl.
In the UK North Sea, Premier says the Caledonia field redevelopment, close to its operated Balmoral production complex, is now part of a project to bring fuel gas to Balmoral. Project sanction is expected later this year, leading to first oil and gas in 2014.
Elsewhere in this region, the Phase 1 subsea installation for the Huntington field, where Premier is a partner, is complete. One injection well and three producers have been drilled testing oil at rates of more than 10,000 b/d per well.
The FPSO upgrade is progressing in Norway and operator E.ON Ruhrgas expects first oil this fall.
The West and East Rochelle subsea fields have been unitized (Premier 15%) to facilitate the fasttrack Rochelle development program via the Nexen-operated Scott platform.
A processing tariff was agreed with the Scott owners and initial Rochelle modifications were implemented on the Scott topsides. Subsea fabrication work is on schedule and rigs have been contracted to drill the Rochelle development wells this summer, with first gas expected in November.
At the Kyle field, gale force winds in December damaged the mooring system of the host Banff FPSO, forcing it 270 m (886 ft) off location and causing damage to the Banff field subsea risers, umbilicals, and possibly also the FPSO turret.
The operator is assessing the damage, but Premier expects production from Kyle to be shut-in until mid-2013. Premier is processing insurance claims under its business interruption and property damage policies.
In the Norwegian North Sea, operator BG Group has selected an FPSO and subsea wells with artificial lift for the development. Premier says an FPSO has been identified and front-end engineering studies are under way both for this vessel and the associated subsea systems and wells.
A decision on project sanction will be taken after this work and FPSO contract negotiations have been completed (before mid-year). First oil could be achieved in late 2015.