Hartshead in talks on infrastructure funding for North Sea gas project

Offshore staff

NORTH PERTH, Australia — Hartshead Resources says the P2607 joint venture (JV), including RockRose, is continuing work on the Phase 1 development of the Anning and Somerville fields in the UK southern North Sea.

The partners remain committed to the project subject to gaining certainty regarding future UK fiscal policy, with both main political parties committed to higher taxes on offshore petroleum operations.

Beyond the UK’s next general election, likely to be held during the fall, there will be further changes to the oil and gas fiscal regime with the opposition Labour Party widely expected to win.

Hartshead has been involved in discussions on the proposed changes and their impact on industry. It has also continued talks on finance for the project, notably infrastructure funding that could reduce the upfront capex requirements for the partnership.

It would involve moving capex into opex via a tariff payable in respect of third-party infrastructure investment. Hartshead has also acted to reduce staff numbers in the project team.

Both the Phase 1 fields have had prior production under a previous regime, with multiple well penetrations, 3D seismic coverage and combined 2P reserves of 301.5 Bcf.

The chosen development concept involves six production wells drilled from two wireline-capable normally unmanned installation platforms at Anning and Somerville. Both platforms will connect via a subsea pipeline to third-party infrastructure operated by Shell for onward transport and processing to entry into the UK gas network.

04.11.2024