Offshore staff
LONDON — Borders & Southern Petroleum (B&S) has produced a phased development concept for its Darwin gas condensate discovery south of the Falkland Islands, validated in an independent study by an international engineering consultancy.
The goals were to generate a production profile involving relatively low initial capex, a fast-track payback and the potential to expand production using free cash flow.
Darwin comprises two adjacent tilted fault blocks, Darwin East and Darwin West, estimated to contain in-place wet gas of 3.2 Tcf and contingent/prospective resources of 462 MMbbl of liquids (condensate and LPGs).
The initial development, focused on Darwin East, could deliver 26,000 bbl/d from two production wells and one gas injector, tied back to an FPSO. The proposed subsea and topsides processing equipment would all be standard industry technology.
Assuming a leased FPSO is leased, the capital requirement, excluding contingency, for drilling, subsea and project costs could amount to $640 million, with payback achieved within two years of first production (assuming a $60/bbl oil price), or one year with a $90/bbl oil price.
Positive factors in terms of the project’s economics are said to be a high-quality reservoir with favorable fluid properties that do not need a large number of development wells, supported by the Falkland Islands Government’ attractive fiscal terms.
Following the initial exploitation phase, further production wells could follow on Darwin East along with the full development of Darwin West, lifting overall output toward 70,000 bbl/d.
B&S aims to attract partners to provide the funding to take the project forward.
01.17.2023
