ADIL, the independent energy consultancy headquartered in Aberdeen, has today confirmed that it has been awarded a £15 million contract extension by Premier Oil to assist with the execution phase of the company’s West of Shetland Solan project.
For the last 20 months, ADIL has been involved with the development phase of the project, providing people and systems to complement the work of the previous operator, Chrysaor Ltd. This new contract extension from Premier, which took over operatorship of the project in January 2012, will play a major role in ADIL's ongoing growth strategy.
The Department of Energy and Climate Change approved Premier's plans for the Solan oil field in April 2012. Solan is expected to produce around 40 million barrels of oil and the estimated initial production rate is 24,000 barrels of oil per day. First oil is expected in the fourth quarter of 2014.
The contract extension awarded to ADIL is due to run until the Solan development comes into production. ADIL will supply personnel to manage the construction and execution phases of the project, which include the construction of a new offshore fixed production facility, currently being fabricated in Methil, Fife and a 300,000-barrel capacity subsea storage tank to be fabricated overseas. ADIL will also provide project management support to Premier Oil, with a 30-strong team working to bring the development on line early in the last quarter of 2014.
In a first for the company, ADIL will be relocating personnel to a currently undisclosed site overseas to supervise the construction of the subsea storage tank. This is a key milestone in the company's ambitions for international growth.
Andy Halliwell, development projects manager at ADIL, said: “This is a large, multi-faceted project. Most notably, it is ADIL’s first major greenfield project requiring the construction of brand new offshore facilities, including a new topsides and jacket.
“We are also supplying a much larger team than we have historically - due to the complexity and scale of the Solan project we are providing a team of 30 personnel to Premier Oil.
“All of these things make this an exciting project for us. To have a team based overseas is a key step towards the company's ambition to move into other parts of the world. Our aim is to be involved in projects located in other regions including Australia and the Middle East.”
The project will see two production and two injection subsea wells tied back to a not permanently manned fixed production platform. Oil will be collected in a subsea storage tank and exported via an oil offloading system to shuttle tankers.
Mr Halliwell added: “The concept of having an unmanned facility West of Shetland with subsea storage is an interesting one that could be applied not just to other parts of the North Sea, but also around the world. ADIL's ability to help put this concept together is why we have been invited to be part of Premier’s plans. It is the capabilities of our people and the ideas that they bring that have helped us win this significant contract extension."
ADIL secures major contract extension with Premier Oil