XER to combine Teekay-Sevan FSO with Arup Platform
The Aberdeen-based Xcite Energy Resources Limited (Xcite or XER) company selected the conceptual design to develop its heavy crude oil field, Bentley offshore the Shetland Islands in the UK North Sea in combining a Teekay Sevan-type floating storage and offloading (FSO) vessel together with Arup ACE steel frame platform.
Bentley was discovered in 1977 but was left undeveloped because of its 10°- 12° API heavy crude oil throwing the production costs onto the upper level while the expected recovery rate remains uncertain.
Located 160 kilometers east of the Shetland Islands, Bentley belongs to the same basin as Statoil-operated Bressay, eight kilometers in the north, as Enquest-operated Kraken, fifteen kilometers west, and BP-operated Bruce field, twenty kilometers south-west.
As part of the Block 9/3b, Xcite was granted from a first licence as sole owner and operator in 2003.
Since then Xcite implemented an exploratory and drilling program up to 2012 in order to evaluate Bentley actual reserves and define the optimized strategy to develop it.
As the first wells drilled in Bentley confirmed the nature of the heavy crude oil, understanding its combination with the associated gas and water was the preliminary requiste to further investment.
During this exploratory campaign, Xcite tested all the processes required for such heavy crude including:
– Oil – gas – water separation
– Demulsifier and defoamer
– Preparation and injection of the chemicals and diluents
– Downhole heating
– Pipeline flow assurance
– Crude oil blending
As a result of this campaign of tests, Xcite estimated to the recoverable reserves (2P) in Bentley to 257 million barrels of oil out of the 909 million in-place reserves.
Xcite signed MOU with AMEC and Arup for Bentley
In order to optimize costs and first production, Xcite opted for a development in phases, Bentley North, Bentley West and Bentley East-South.
For the Bentley Phase-1, Xcite signed in April 2014 series of Memorandum of Understanding (MOU) with key partners to provide costs competitive solutions, with:
– Teekay Shipping Norway AS (Teekay) for the supply of a cylindrical Sevan-type FSO
– Ove Arup Partners (Arup) for the design and construction of a self-installing steel ACE platform
– Amec for the management, engineering, procurement, construction and installation
In this concept, the Sevan FSO will be bridged to the Arup ACE steel frame platform equipped with 20 slots with 4-5 laterals per well.
Xcite and Teekay–Sevan will work together to carry out the front end engineering and design (FEED) of the FSO, then to implement the construction and installation.
According to the MOU, Teekay will continue to support Xcite for the operation and maintenance.
This SevanFSO is due to stand on Bentley during all the phases that Xcite has planned to develop this field and anticipated expansions.
In signing the MOUs with Arup and Amec, Xcite intends to adjust the basic design of its ACE steel platform to Bentley requirements in respect with the multiples processes to be integrated in the topsides.
Because of its self-elevated design, the Arup ACE plaform is easy to tow, install, operate and decommission.
Even if Bentley appears as a complex heavy crude oil offshore field, the MOU signed with Teekay–Sevan for the FSO and the tandem Amec–Arup for the ACE platform will give the opportunity to Xcite to start the first phase on fast-track for a first production expected in by 2017 and to last 35 years.
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Tags: 10°- 12° API heavy crude oil, Aberdeen-based Xcite Energy Resources Limited Xcite or XER company, AMEC, Arup ACE steel frame platform, associated gas, basin as Statoil-operated Bressay, Bentley heavy crude oil offshore field, Bentley offshore the Shetland Islands in the UK North Sea, Bentley Phase-1, BP-operated Bruce field, conceptual design, Crude oil blending, cylindrical Sevan-type FSO, Demulsifier and defoamer, Downhole heating, Enquest-operated Kraken, exploratory and drilling program, Front End Engineering and Design (FEED), heavy crude oil, Memorandum of Understanding (MOU), Oil - gas - water separation, Ove Arup Partners (Arup), Pipeline flow assurance, Preparation and injection of the chemicals and diluents, recoverable reserves (2P) in Bentley, self-installing steel ACE platform, Teekay Sevan-type floating storage and offloading FSO vessel, Teekay Shipping Norway AS (Teekay), topsides
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OSLO (Reuters) - Norwegian oil and gas firm Statoil (STL.OL) has delayed the development of its Bressay heavy oil field in the UK North Sea, hoping to simplify the project and reduce its costs, a spokesman said on Friday.
Bressay, thought to contain between 200 million and 300 million barrels of recoverable oil, was expected to cost up to $7 billion, a relatively high figure because of difficult conditions.
However, well data from the nearby Bentley field, which has similar geology, has indicated potential to simplify the development concept, reduce the number of wells required and make it cheaper, spokesman Knut Rostad said.
“Statoil has, based on the recommendation from the Bressay licence group, decided to reconsider the development concept and delayed the field development decision,” Rostad said.
Statoil earlier said it aimed for first oil in the first quarter of 2018 and for Bressay to operate for 30 years.
Rostad said work on the nearby Mariner field, which has around 250 million barrels of recoverable oil, was unaffected and the $7 billion project was moving ahead.
Oil firms have delayed and cancelled projects around the globe this year, hoping to reduce costs and save cash for dividends. Statoil delayed its $15.5 billion Johan Castberg earlier this year due to rising costs.
Bressay, discovered in 1976, laid dormant for decades because it was too expensive to develop but Statoil revisited the project, along with Mariner, after technological advances reduced costs.
The field’s development proposal includes drilling more than 70 wells, and the installation of a production, drilling and accommodation platform. It also envisioned a floating storage and offloading unit and pipelines.
Statoil operates the field and holds about 81.6 percent of the licence, while Royal Dutch Shell (RDSa.L) holds the rest.
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Reporting by Balazs Koranyi; Editing by Dale Hudson