North Sea Southwark well not performing as planned

Offshore staff

LONDON – IOG has encountered further issues with water production in the latest development phase of its Saturn Banks gas hubs project in the UK southern North Sea.

The Southwark A2 development well has undergone the hydraulic stimulation phase and currently remains in the clean-up phase, which has taken longer than planned.

Following stimulation of six reservoir zones, gas rates to date have been lower than expected, up to 4.2 MMcf/d via coiled tubing, with a flowing wellhead pressure of 456 psi.

Associated water rates of up to 1,632 bbl/d suggest a connection to the active aquifer from at least one of the stimulated zones, IOG added.

A production logging tool (PLT) is being run to derive downhole data to help determine the contribution of each zone. Subject to the PLT data, one option would be to isolate water producing zones to enable gas to flow from other zones. Associated equipment has been mobilized to the rig and could be run over the next week.

If isolation works, the company expects to receive updated well test results in the next few weeks, providing a better picture of conditions needed for the A2 well to produce gas at commercial rates.

IOG COO Dougie Scott said, "Having stimulated six discrete reservoir zones, a low gas rate and apparent formation water production at this stage of the A2 well clean-up is unexpected and disappointing. The production logging tool should provide important gas and liquid flow data to help us calibrate the forward plan, which is likely to be to isolate water producing zones in order to assist gas flow."

IOG CEO Rupert Newall added, "The Southwark A2 well testing and clean-up process has not met our expectations to date. At this stage, however, the IOG and Petrofac teams continue to work through the options, gather data, interpret the implications for field production and evaluate next steps."

01.18.2023