IOG close to starting up second North Sea Blythe gas well
Offshore staff
LONDON — Remedial work continues at IOG’s Blythe H2 gas well in the UK southern North Sea, with cleanup and testing operations performed over the past four days.
The well was drilled to a total depth of 13,400 ft MD, with initial data suggesting better permeability and porosity compared to the Blythe H1 wellbore.
H2 has flowed dry gas at up to 22.8 Mmcf/d and condensate at 280-336 b/d at the export pipeline pressure of 1,250 psi, with no formation water observed. While this is an improvement on current H1 rate, it remains below the expected initial H2 gas rate of 30 MMcf/d to 40 MMcf/d.
A potential mechanical blockage downhole appears to be constraining flow, and equipment will be brought in and run in the well to assess and address this issue.
On the positive side, no faults or fractures were apparent in the H2 reservoir section, unlike at H1 where a sub-seismic fracture appears to be causing formation water production.
H2 will now undergo final hookup and commissioning and should go onstream this month, despite the 34 days lost to the recent well control event.
At that point, IOG plans to shut in H1, although it could be reopened at lower rates (to minimize water production) if gas prices rise.
According to IOG CEO Rupert Newall, gas market volatility is putting pressure on the company, with UK NBP day-ahead gas prices down by over since last August. The forward curve for the second half of this year has also tumbled with near-term prices at less than half the level in February 2022 before the Ukraine war started.
06.07.2023
