Hartshead Resources NL (ASX:HHR) has inked a deal with global oil titan Shell to complete a three-month engineering study for its phase one gas field development.
In essence, the study will evaluate a preferred offtake route and tie-in option, designed to transport gas from Hartshead’s property to Shell’s infrastructure.
At present, that route involves a tie-in to Shell’s Southern North Sea set-up, from which it’ll be transported to a coastal village in North Norfolk.
Once it reaches the shore, the gas is earmarked for processing and delivery to the UK’s Gas National Transmission System — a network of pipelines that supply gas to around 40 power stations and large industrial users in Great Britain.
What now?
Building company Petrofac will conduct the study, which will cornerstone the offtake route’s design and cost estimates and detail any brownfields modifications to get the project off the ground.
Shell will provide assurance on the final study before front-end engineering and design work kicks off.
Beyond that milestone, both parties will need to submit their final field development plan to the UK government for the stamp of approval.
Show me the money
All up, Hartshead’s contribution to the study is expected to set the company back around half a million pounds.
It plans to fund the outgoings through its existing cash reserves, supporting work like providing guidance on the study’s deliverables and ensuring the output and results comply with the Shell select phase for the feasibility study.
Hartshead’s scope of work with Petrofac includes:
- offshore construction support for the subsea pipeline(s) tie-in activities on the Corvette to Leman Alpha export pipeline;
- installing line-of-sight communication dishes and interface connection;
- supplying pipework for successive stage-wise production flow routing, system control and integration production route export options across the asset; and
- integrating control room communications and all reporting systems with the new platforms.