BP and its partners in the UK North Sea NW Hutton field are offering 100% of their interest, lock, stock and more than half full barrel to anyone interested in the abandoned asset and surrounding acreage.
The packaged NW Hutton field and Q-West area comprise the whole of blocks 211/27a (Licence P184) and 211/27c (Licence P474).
BP, with partners Exxon Mobil, Shell, and Cieco of Japan say in the sales blurb: This is an excellent opportunity for an innovative, enterprising company to unlock the remaining reserve potential and value of the field through redevelopment.
A development opportunity, apparently with potential reserves of more than 80million barrels of oil.
A field where the recovery factor is currently only 26% – average for fields in the area is 45%.
Full control – 100% equity and operatorship.
An extensive supporting engineering and geoscience database and studies.
4th Round Licences (P184 and P474) currently expiring in 2018.
Apparently multiple possible development options and off-take routes.
No liability for decommissioning regarding existing NW Hutton facilities.
NW Hutton was discovered in 1975 by exploration well 211/27-3, which produced high quality 34.5 Deg API gravity oil from Middle Jurassic Brent Group sediments. Reserves were then calculated as 487million stock tank barrels of oil.
The field began production in April 1983, through a single steel jacket self-contained platform production facility, achieving a peak output rate of 86,500 barrels of oil per day. NW Hutton was shut down in 2002 as a result of poor performance, aggravated by an oil price of $23 per barrel.
Just 135million barrels of oil 12billion cu ft of gas were recovered.
The partners say there is also exploration potential around the main field, mainly to the north and east.
Which rather begs the question as to why the Department of Trade & Industry (now BERR) allowed BP to go ahead with full field abandonment, given the alleged criticality of existing infrastructure to maximize recovery from the North Sea. Both the UK Government and the industry itself have highlighted this issue.
An online data room for the redundant assets was opened on May 19 and BP is offering detailed assessments between June 30 and July 18, with a deadline for field offers by August 11 this year.
Shell with Exxon are also trying to get shot of other Northern North Sea acreage, this time a portfolio of discoveries and exploration interests comprising four finds, plus a number of prospects and leads.
In place reserves for the discoveries are said to be 51million barrels of oil, with a further estimated 43million barrels upside associated with the prospects and leads.
The package consists of numerous recovery opportunities alongside substantial exploration prospectivity as demonstrated by the recent East & West Rinnes oil discoveries made by Dana Petroleum, which is poised to conduct further exploration in the area.
Shell and Exxon say in the for sale note: “In addition to the volume potential, this package offers a strong entry opportunity into the UK North Sea, in a region strategically located at the heart of the Northern North Sea oil and gas distribution network with access to all required infrastructure.”
The area contains several mature fields with multiple evacuation routes.
The online data room opened on June 16. Offers are due by July 21.