Studies indicate low breakeven price for offshore Falklands Darwin project

Offshore staff

LONDONBorders & Southern (B&S) says two technical projects have been completed concerning potential development of the deepwater Darwin gas/condensate discovery south of the Falkland Islands.

These were a reservoir engineering study and a facilities engineering study. Results are being used to assess the commerciality of Darwin in the current low oil price, but relatively low cost market.

To date the company has evaluated full-field (Darwin East and Darwin West combined) and phased developments, either of which would involve subsea well completions tied back to a leased FPSO.

The field is in around 2,000 m (6,562 ft) of water, but 14 km (8.7 mi) to the south water depths decrease to 1,100 m (3,609 ft), opening the way to alternate engineering solutions.

B&S favors a phased development, initially targeting 270 MMbbl of condensate, with four production wells and three gas re-injectors, and an initial production rate of 56,000 b/d.

Estimates by engineering contractors suggest capex of $1.36 billion, based on which B&S foresees a breakeven oil price for development of $40/bbl.

This is due to a combination of attractive fiscal terms set by the Falkland Islands government, a high quality reservoir which does not require a large number of development wells, and a relatively straightforward development plan using proven technology.

09/26/2016

Share your news with Offshore at news@offshore-mag.com

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...