Offshore staff
GODALMING, UK — Hurricane Energy is maintaining production from the basement Lancaster oil field west of Shetland, but it has decided against drilling a further well.
Production through the field’s single live well was about 8,700 bbl/d with a water cut of 46% earlier this week.
The company had discussed drilling another producer, P8, with the UK regulators. Its originally approved development plan included flaring as the approved gas disposal mechanism. S subsequent amendment, approved by the North Sea Transition Authority, allows for production below the bubble point, but with a requirement for rolling and declining three-monthly production, flare and vent consents.
Hurricane then sought to convince OPRED (the UK’s Offshore Petroleum Regulator for Environment & Decommissioning) that the P8 well would have no significant environmental impact beyond the environmental approvals already given. However, the need to retrofit a new gas export or disposal system to the existing development would be technically demanding and with a high cost.
The anticipated recovery of gas and the impact on extended field life meant that the investment might not be economically justifiable.
Earlier this month, the company decided to take steps to relinquish the Halifax license (P2308) in the same region after assessing a low likelihood of a successful economic development.
Now the board is considering other opportunities via farm-in, acquisitions and mergers.
09.30.2022
