North Sea Buchan partners given more time to prepare development plan
March 4, 2025
Related To: Jersey Oil and Gas
Jersey Oil & Gas has issued a status update for the Buchan Horst development project in the UK central North Sea, which is operated by NEO Energy.
Following last year’s submission of an application to the North Sea Transition Authority, the second term of the P2498 Buchan license has been extended by 24 months to Feb. 28, 2027. This should provide the licensees with the time they need to finalize their redevelopment plan for the Buchan Field.
However, completion of the Buchan environmental impact assessment (EIA) approval process has been put on hold following the UK Supreme Court's "Finch" judgment in 2024, which called for the inclusion of Scope 3 emissions in development project EIAs.
Actions needed to advance the Buchan EIA should become clearer once the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) has issued its revised guidance, which is anticipated sometime this spring.
Last year, the new UK government announced a consultation on the tax regime that it plans to apply to the oil and gas industry post-2030. The consultation process is due to start shortly; the Buchan Horst partners will wait for clarity on the outcome before sanctioning the project.
As for the proposed production platform, the FPSO currently deployed on Dana Petroleum’s Western Isles project in the northern North Sea. The agreed longstop date of end-February passed with certain tasks remaining to satisfy the main technical requirements of the sale and purchase agreement.
However, the parties have not terminated the agreement and are in talks on a contractual way forward to accommodate the delays. NEO Energy, as partner to Dana, retains a 23% ownership of the FPSO.
