NORTHERN PRODUCER ON LOCATION

RNS Number : 5492I

Petrofac Limited

20 November 2008

 



NORTHERN PRODUCER ON LOCATION IN DON

Petrofac, the international oil & gas facilities service provider, announces that its Energy Developments division, as operator and on behalf of itself and its co-venturers, completed the safe mooring operation for the Northern Producer on location on the Don Area development in the North Sea.

This project milestone follows the successful completion of a major refurbishment programme for the semi-submersible production platform Northern Producer in the McNulty Offshore facility in Newcastle upon Tyne. The refurbishment works were managed by Petrofac Energy Developments. In addition to the provision of field specific equipment, the Northern Producer underwent a major campaign of fatigue life enhancement works and equipment refurbishment.

Bill Dunnett, executive vice president, project development for Petrofac Energy Developments Ltd., said: "We are pleased to announce that the Northern Producer refit has been safely completed in line with our target schedule. McNulty Offshore and its major contractors have demonstrated a high quality of work and professionalism during the refurbishment works.

The safe installation of the unit in its permanent location on the Don Fields marks the start of the final phase of infrastructure tie-ins, commissioning and drilling operations ahead of Production".

Amjad Bseisu, Chief Executive, Petrofac Energy Developments Ltd. commented: "A significant milestone has also been reached in the drilling programme. The Transocean John Shaw has now completed drilling and the final liner has been set on the first West Don production well which achieved over 2,000ft of good quality sandstone reservoir with logged oil as per prognosis. The well is planned to be completed prior to the John Shaw moving to Don Southwest to start drilling and allow tie-in operations at West Don to commence. The project remains on target for first oil production during the first half of 2009."

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For further information contact:

Bell Pottinger Corporate & Financial                [phone]

Charles Cook

Olly Scott

Notes to Editors

1. Petrofac

Petrofac is a leading international provider of facilities solutions to the oil & gas production and processing industry, with a diverse customer portfolio including many of the world's leading integrated, independent and national oil & gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC) and is a constituent of the FTSE 100 Index. 

Through its three divisions, Engineering & Construction, Operations Services and Energy Developments, Petrofac designs and builds oil & gas facilities; operates, maintains or manages facilities and trains personnel; and, where return criteria are met and service revenue synergies identified, co-invests with customers and partners. Petrofac's range of services allows it to help meet its customers' needs across the life cycle of oil & gas assets.

With more than 10,000 employees, Petrofac operates out of four strategically located international centres, in Aberdeen, Sharjah, Woking and Mumbai and a further 20 offices worldwide. The predominant focus of Petrofac's business is on the UK Continental Shelf (UKCS), Africa, the Middle East, the Commonwealth of Independent States (CIS) and the Asia Pacific region.

For additional information, please refer to the Petrofac website at www.petrofac.com

2. Don Area development

Both Don Southwest and West Don Fields are located in the northern North Sea, approximately 150 km northeast of the Shetland Islands and 12 km north of the Thistle Field in a water depth of approximately 500ft.

The Northern Producer floating production facility, which recently finished an assignment on the Galley Field, will be utilised for processing fluids from both fields ahead of export. It has been secured for field life under a lease arrangement, with lease cost based on an oil throughput tariff dependent on Brent oil prices.

Oil export from the Northern Producer will be by offshore tanker loading initially and then by subsea tie-back for export service via the Thistle platform.

3. Don Southwest

Petrofac Energy Developments assumed operatorship of Don SW after purchasing interests from former co-owners BP and Conoco in December 2006. Petrofac as operator holds 60% equity in Licence P.236 (Block 211/18a-Don Southwest Area) with the sole partner Valiant North Sea Limited holding 40%. 

Don SW is an oil field comprising 450ft thick Brent sequence sandstones, as producing in the nearby Thistle and South Magnus Fields. The under saturated oil is held in a combination of dip and fault traps at a depth of 11,000 to 11,500ft.

The proposed development consists of two high angle producers and two water injectors tied-back to the Northern Producer.

Total capital costs of the project are estimated to be circa £190 million (gross).

4. West Don

Petrofac Energy Developments assumed operatorship of West Don after purchasing a 40% equity interest in Block 211/18a (West Don Area) from former co-owners BP and Conoco in February 2006. The West Don Field straddles Blocks 211/13b and 211/18a (West Don Area) (licences P.1200 and P.236 respectively). Owners of the two blocks have agreed a fixed field unitisation, which results in Petrofac owning 27.7% of the West Don unit.

Owner Equity %	211/18 (P.236)	211/13b (P.1200)	Unit Area
Petrofac	43.11	-	27.700
First Oil	30.00	-	19.275
Valiant	26.89	-	17.275
Nippon	-	50.00	18.500
Stratic	-	50.00	17.250

The West Don field was discovered in 1975 by well 211/18-9 that contained oil in sandstones of the Middle Jurassic Brent Group. The West Don reservoir comprises circa 470ft thick Brent sandstones.

The proposed development consists of drilling of two updip high angle producers and one down dip water injector well from a central cluster, tied back to the Northern producer, which will also handle Don Southwest production.

Total capital costs of the project are estimated to be circa £170 million (gross).

 

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