Gas Production Commences
Tullow Oil PLC
04 December 2002
4th December 2002
Tullow Oil plc: Production Commences from New North Sea Gas Field
Tullow Oil plc ('Tullow'), the independent oil and gas exploration, development
and production company, announces that its wholly owned subsidiary, Tullow Oil
UK Limited ('TOUK'), and its co-venturers, Conoco (U.K.) Limited and GDF Britain
Limited, have begun natural gas production from the Murdoch K field in the
southern sector of the U.K. North Sea, some 115 miles north east of
Lincolnshire.
Murdoch K, the second Carboniferous field to be produced as part of the CMS III
subsea based development, began producing on 3rd December. It attained a
production rate of 204 million standard cubic feet of natural gas per day
(mmscfd) on test, which is above the design intent.
Tullow Oil UK Limited (TOUK) holds a 14.1 percent interest in the field. Conoco
(U.K.) Limited, a wholly-owned subsidiary of ConocoPhillips operates the field
with 59.5 percent, and GDF Britain Limited holds 26.4 percent.
The Murdoch K well, 44/22a-10Y, was a sidetrack of the March 2001 discovery
well. The field is one of five natural gas reservoirs currently being developed
by the consortium as a single, unitised project containing some 430 billion
standard cubic feet of natural gas.
The other fields are Hawksley, McAdam, Boulton H and Watt. Collectively, they
are known as CMS III because they are being developed using the production and
transportation facilities of the Caister Murdoch System (CMS). The Hawksley
field was brought on stream on 7th September, at a sustained production rate of
170 mmscfd. The current combined CMS III production rate is 300 mmscfd from two
wells.
The satellite development comprises: subsea production centres for each
reservoir, interconnecting pipelines, service umbilicals and control systems
linked back to the CMS facilities located at the Murdoch field. The subsea
infrastructure is now in place, and as each new production well is completed,
tie-in and production will be achieved within weeks.
Participants in CMS are ConocoPhillips (operator), Consort Caister Limited, GDF
Britain Limited and Tullow Oil UK Limited. The complex required extensive new
and upgraded facilities, including a new bridge-linked accommodation platform,
which was installed in May 2002, and tie-ins for the CMS III subsea development.
In addition, in mid-2003, installation of a new compression module will double
the CMS compression capacity for existing and new production, and provide for
future natural gas developments in the area. Produced natural gas is transported
from CMS by subsea pipeline to the Theddlethorpe Gas Terminal on the
Lincolnshire coast.
The third development well is currently drilling on the McAdam field, and
production from this well is expected in the first quarter of 2003.
Aidan Heavey, Tullow's Chief Executive commented: ' We are extremely pleased
with the exceptionally high productivity achieved from the first two producing
wells on CMSIII, and the initial indications are that the reserves in these two
fields will be at the upper end of our expectations.'
For further information contact:
Tullow Oil plc Tel: 020 7333 6800
Aidan Heavey, Chief Executive
Graham Martin, Legal and Commercial Director
John Lander, Managing Director, Tullow Oil UK Limited
www.tullowoil.com
Binns & Co PR Ltd
Emma McCaffrey Tel: 020 7786 9600
Judith Parry Tel: 0113 242 1171
www.binnspr.co.uk
NOTES TO EDITORS
Tullow Oil plc is a UK registered company, quoted on the London and Irish stock
exchanges, and one of the largest Independent Exploration and Production
companies in Europe. Tullow Oil is a dynamic player in the international oil and
gas industry. Its primary offices are in London (UK & Corporate) and Dublin
(International Business).
Tullow Oil has interests in 52 exploration and production licences spread over
three main areas - Indian Subcontinent, Africa, and Europe - and has regional
offices in each area.
This information is provided by RNS
The company news service from the London Stock Exchange