Offshore staff
LONDON — Orcadian Energy has a non-binding heads of agreement with an unnamed North Sea operator concerning a farm-out of the Pilot Field development in the central UK North Sea.
The operator has a commercial exclusivity period to complete definite documentation for the transaction until Nov. 30.
If the deal does go through, the two companies would progress the development of the Pilot Field, which holds close to 79 MMbbl of 2P reserves, according to an audit by Sproule in 2021, with upside potential in the surrounding area.
The other party would become operator of the development and would acquire an 81.25% interest in license P2244. The partners would then work to submit an updated plan for a polymer flood development of the field for submission to the North Sea Transition Authority (NSTA).
Orcadian expects the revised plan to increase the field’s resources by 5% to 10% relative to the 2021 CPR scenario.
The company would retain an 18.75% carried interest in the development with the new operator paying 100% of the pre-first oil work scope. After first oil, Orcadian would pay its working interest share of expenditure.
The partners have asked the NSTA to extend the second term of the license and will request an out-of-round application for the area of former license P2320, which Orcadian had to relinquish earlier this year, to support the area-wide plan.
09.22.2023
