Maersk announces contract Culzean offshore oil and gas project


Maersk Oil North Sea UK Limited has awarded a contract for the engineering, procurement and construction of the Culzean project’s well head platform jacket.

After a competitive tendering process, Maersk Oil North Sea UK Limited (Maersk Oil UK), operator of the Culzean development in the North Sea, has awarded a contract for the engineering, procurement and construction (EPC) of the project’s well head platform (WHP) jacket to Heerema Hartlepool Limited (Heerema).

Heerema will build the WHP jacket and piles, the well head access deck and access ways. It’s expected that the well head access deck and access ways will be fabricated in Hartlepool, with the WHP jacket being built in Vlissingen in the Netherlands. The contract is expected to be ready for ‘sail away’ ahead of drilling startup on the project in Q2 2016, subject to a final investment decision in 2015.

The award comes as Hercules Offshore Inc, the provider of the newbuild jackup rig for the Culzean development, begins a recruitment drive in Aberdeen as it establishes a permanent UK presence to support the Culzean project and pursue other market opportunities. This inward investment is expected to create up to 100 offshore and 20 onshore jobs.

Welcoming the WHP jacket award, Maersk Oil UK Managing Director, Martin Rune Pedersen said, “The Culzean project continues to progress well. This award has been made on schedule and three weeks after steel cutting began on the heavy duty jack-up rig which will commence drilling in Q2 2016, subject to final approvals.”

Commenting on the announcement, Exchequer Secretary to the Treasury, Priti Patel MP said, “The Culzean project has the potential to meet around 5% of UK gas demand in 2020/21, and would not be possible without the Government’s ultra high pressure, high temperature cluster area allowance. The new allowance builds on the existing work that the Government has done with industry through field allowances, which has helped create new jobs through record levels of investment. Oil & Gas UK estimates the Government’s allowances directly incentivised £7bn of investment last year.”

Key facts on Culzean

• Culzean is a uHP/HT field. Maersk Oil UK (49.99%) is the operator, with JX Nippon (34.01%) and Britoil (BP) (16%) its co-venturers.
• Forecast plateau production is in a range of 400-500 million standard cubic feet per day (this represents Maersk Oil equity production of 30-45,000 boepd).
• The accommodation platform will have capacity for over 100 people.
• The water depth is approximately 88 metres and the reservoir is located around 4300 metres below sea level.

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