BP today announced the successful start-up of the Devenick gas project in the central North Sea. The Devenick project is a subsea tie-back to Marathon Oil’s East Brae platform and provides an important new source of domestic gas for the UK.
Trevor Garlick, Regional President for BP’s North Sea business, said: “The Devenick project has been delivered safely and on schedule. The project provides an important source of domestic gas to the UK and has also been a great example of the UK’s strengths in subsea engineering. Around £500 million has been invested in the UK supply chain during the development of this project.”
Production from the field is due to peak in 2013 at up to 100 million standard cubic feet per day. Total investment by BP and its partners in the Devenick project has been around £650 million.
Energy Minister John Hayes said: “As winter approaches, BP’s announcement is very warmly welcome. When the Devenick project comes on full stream it will add an extra three per cent to current UK gas production - enough to supply the equivalent of more than half a million homes a year.
“The majority of this project’s £650 million investment has benefited UK companies, and it is only because of the expertise of our world class subsea sector that this project is technically possible.”
BP owns 88.7 per cent and RWE Dea UK the remaining 11.3 per cent.
BP in the North Sea:
•BP is a major investor in the North Sea (UK and Norway) with an extensive portfolio of production from existing reservoirs; new projects under development; and growth potential in undeveloped resources.
•BP’s annual North Sea production averages around 200,000 barrels of oil equivalent per day and the company has over 3 billion barrels of estimated proven and contingent resource available.
•BP expects to invest $10 billion (c £6.7billion) net over the next five years in the North Sea – including major projects in the UK and in Norway.
•Three other major projects are currently underway in the UK – Clair Ridge, Quad 204 (Schiehallion), and Kinnoull - and two in Norway – Skarv and Valhall Redevelopment.
•In the 26th UKCS Licensing Round in 2010, BP was awarded licence interests in seven offshore exploration blocks – the largest licence award BP has received in the UK for more than a decade.
Devenick Project details
•The Devenick field is located 34km north of the East Brae platform in the Central North Sea.
•The field was first discovered in 1983 and a further three appraisal wells were drilled between 1986 and 2001.
•New advances in subsea technology allowed the JV partnership to move ahead with an economic development.
•The development connects gas production to the Devenick subsea manifold via specially insulated flowlines. The gas is then sent to the East Brae platform via a 16” insulated 34km pipeline.
•Total gas in place in the Devenick field is estimated at 430 billion standard cubic feet and production is expected to last until 2025.
•75% of the project expenditure was in the UK, for example:
◦At McNulty Offshore Construction in South Shields where the new platform module was constructed;
◦At Evanton, near Invergordon, where Technip fabricated the pipelines and spools;
◦At Isleburn where fabrication of the subsea manifold and other subsea equipment occurred.
•The subsea engineering and package management has been executed by JP Kenny;
•The subsea construction contract was awarded to Technip UK;
•Marathon Oil's topsides brownfield design and construction work was managed by Petrofac, whilst the new module was designed by Aker Solutions.
BP confirms start-up of Devenick gas project in central North Sea