LONDON — Jersey Oil & Gas (JOG) and incoming operator NEO Energy have chosen an FPSO redeployment for their Greater Buchan Area (GBA) development in the UK central North Sea.
According to JOG, this concept displayed the lowest full-cycle carbon footprint of all the potential options evaluated, with potential for limited modifications as part of the process for making the FPSO "electrification-ready."
The vessel could then be connected to one of the anticipated floating wind power developments planned at locations close to the GBA, following Crown Estate Scotland’s recent Innovation and Targeted Oil & Gas (INTOG) offshore license awards.
The chosen development also aligns with the North Sea Transition Authority’s (NSTA) obligations to maximize economic recovery of the UK’s remaining offshore oil and gas reserves, while at the same time supporting the government's net-zero target, JOG added.
The NSTA has sent a letter confirming it has no objections to the concept select report submitted for the Buchan redevelopment program.
Work has now started on progressing on the engineering studies required prior to submission of the development plan in 2024. JOG estimates total capex of $900 million for the Buchan Field redevelopment, including acquisition of the FPSO; although this could be refined under the FEED process.
Production could begin in 2026.
The NSTA has also approved an extension to the second term of JOG’s nearby P2170 license containing the Verbier discovery through Aug. 29, 2026. This will provide the licensees with more time to prepare a field development plan for Verbier under a subsequent phase of the GBA development.
07.05.2023
