logo-loader

Hurricane Energy congratulates BP on new West of Shetland discovery

Published: 10:48 31 Jan 2018 GMT

Paul B Loyd Junior rig, image source: BP Plc
Hurricane will use the same rig later this year

Hurricane Energy Plc (LON:HUR) has congratulated BP Plc (LON:BP) on its new discovery in the West of Shetland region, offshore UK.

BP on Wednesday unveiled a new oil discoveries in well drilled this summer in the North Sea.

In the West of Shetland area the Achmelvich well discovered oil and it is now being evaluated. Meanwhile, the Capercaillie well, in the Central North Sea, made a light oil and gas-condensate discovery which could be tied into existing infrastructure.

In Hurricane’s neighbourhood

The BP news is positive for Hurricane in as much as it is a positive for the West of Shetland neighbourhood.  The region is comparatively remote and hostile, versus most of the North Sea, and as new projects emerge and come online the environment improves both in terms of economics and operational viability.

More symbolically, it is perhaps something of a positive omen for Hurricane which is set to use the same Transocean rig later this year as it starts development work for the initial start-up of the Lancaster field.

The Lancaster field early production system (EPS) is due online in the first-half of 2019 with this start-up phase forecast to deliver up to 17,000 barrels of oil per day (bopd).

Recently analysts embarked on a site visit to Dubai where the Aoka Mizu floating production, storage and offloading (FPSO) vessel (which is contracted to the project) is dry-docked for upgrade works. It is expected to arrive onsite in September.

“Exciting times” for BP in North Sea

Mark Thomas, BP president for the North Sea, said: “These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalised business that we expect to double production to 200,000 barrels a day by 2020 and keep producing beyond 2050,” said

“We are hopeful that Capercaillie and Achmelvich may lead to further additions to our North Sea business, sitting alongside major developments like Quad 204, which came onstream in 2017, Clair Ridge, due to come into production this year, and the non-operated Culzean field, expected to start-up in 2019.”

Industry body lauds BP’s well successes

Elsewhere, the discoveries were lauded by offshore industry group Oil & Gas UK.

“BP’s exciting discovery marks a more positive start to 2018 for UK exploration,” said Deirdre Michie, Oil & Gas UK chief executive.

“Our competitive fiscal terms, and the strides we have made to bring our finding costs in line with our peers, make the UK Continental Shelf a very attractive basin for doing business.

“While industry continues to build on its efficiency programme, Oil & Gas UK will continue to work closely with stakeholders to ensure no stone is left unturned in our efforts to maximise economic recovery from the basin.”

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

2 hours, 36 minutes ago