Offshore staff
LONDON — NEO Energy and partner Jersey Oil & Gas (JOG) are monitoring political developments in the UK as they continue planning for their Buchan redevelopment project in the central North Sea.
The General Election on July 4 is earlier than expected, JOG said, and the partners have been assessing the implications. Although they still aim to have the project ready for field development plan (FDP) approval by the end of the year, the exact timing and project sanction will depend on obtaining fiscal clarity from the next government and ensuring that the development remains financially attractive.
The Labour Party, widely expected to form the next administration, has pledged to increase the Energy Profits Levy on the industry that the current Conservative government introduced.
A first offshore survey for the Buchan project, completed in May, is providing geophysical data for the subsea and drilling rig contract tendering process. A second survey, to acquire geotechnical data, should get underway later this month.
Work continues on completing subsurface studies to finalize the development drilling program and operational verification and preparation for the handover of the Western Isles circular FPSO from current operator Dana Petroleum to the Buchan joint venture.
Talks are progressing on the FDP and associated regulatory consents with the North Sea Transition Authority and the Offshore Petroleum Regulator for the Environment and Decommissioning.
Assuming positive news on fiscal clarity and subject to FDP approval, major contract awards and capital commitments for the project should follow in 2025, JOG added. The partners are aiming for first production in late 2027.
06.06.2024
