Rising costs puts end to North Sea Fyne project

Offshore staff

CALGARY, Canada – Antrim Energy (LON:AEY) has decided not to develop the Fyne oil field in the UK North Sea.

Until recently, the planned development in block 21/28a appeared to meet the company’s economic threshold, and start-up was targeted for late 2014, contingent on redeployment of an FPSO from its current location.

However, projected capital costs have soared, rendering the project uneconomic.

Most of the associated costs were written off in March 2012, and the company anticipates no further material write downs, as recent work has been limited to front-end engineering design work for the subsea facilities and modifications to the FPSO.

4/5/2013