Offshore staff
LONDON — IOG has issued an update on development progress at its Saturn Banks gas project in the UK southern North Sea.
Since the restart of production last month, issues with the platform generator and MEG pump, and an unplanned shutdown of the Bacton gas reception terminal, have limited output from the Blythe field to 17.1 MMcf/d, although the current rate is back up to 22 MMcf/d.
IOG management is focused on helping the offshore duty holder address the causes of the downtime and implement performance improvements.
The Elgood well is shut in. Further production will likely require lower liquid volumes in the Saturn Banks Pipeline System, after which the well will be produced cyclically.
Produced water from the Blythe H1 well continues to be managed onshore, with options to cut disposal costs under review.
The Southwark A2 well hydraulic stimulation operations should finish by the end of this week, with all subsea work for the Southwark development now complete.
A well test and cleanup is planned for A2 next week, with final hookup and commissioning and safety reviews to follow leading to Southwark first gas by mid-January.
At that point, the Shelf Perseverance jackup should reenter the A1 well, complete and stimulate it in the first quarter, and bring it onstream by early second-quarter 2023.
Directly after Southwark A1, IOG plans to drill the Blythe H2 well and bring that onstream by early summer 2023, followed by a two-well appraisal campaign, exercising an extension option in the Shelf Perseverance rig contract.
Detailed well design is advanced, integrating lessons learnt from H1, and the intention is to target the field’s central high, which has no observed faults and potentially better reservoir quality.
Drilling of the H2 well, from a spare well slot and riser on the Blythe platform, remains subject to joint venture partner and regulatory approvals. But IOG maintains the justification is high returns and rapid payback, based on a budget of about £26 million (US$31 million) including hookup and commissioning, plus potential for significant tax shelter.
Management is keen to speed up and maximize recovery from Blyth at a time of high gas prices.
12.22.2022
