Ineos considers next steps for North Sea Breagh gas project

Offshore staff

CALGARY, CanadaIneos Group, the new operator of the Breagh gas field in the UK southern North Sea, has advised partner Sterling Resources that it is reviewing further investments for the Phase 1 development.

The focus is on potential cost reductions and the eventual re-start of drilling activity. According to Sterling, resumption appears unlikely before April, but drilling could be further delayed as no rig contract has been signed.

The planned program involves up to four new wells and hydraulic stimulations.

Two hydraulically stimulated new wells and hydraulic stimulation of an existing well have definitely been approved by the partnership for 2016, but the remaining activity is not yet budgeted.

However, Sterling expects plans to firm up in the next few months following final interpretation of 3D seismic acquired in 2014 and associated reservoir studies.

A review of a potential second phase Breagh development will likely to continue through 2016, also following-on from the 3D/reservoir studies.

Sterling does not anticipate any delay to the associated onshore compression project. Construction work is expected to start this spring with compression set to be operational by end-3Q 2017.


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