Development drilling has started on the southern North Sea Breagh gas field, Aberdeen-based oil and gas explorer Sterling Resources said today.
First gas – on what will be the firm’s first large-scale production – is planned from the RWE Dea UK-operated development for the third quarter.
The Ensco 70 rig is being used for the work.
Sterling, which holds a 30% interest in Breagh with the rest held by RWE, said in March costs had overrun on Breagh by 17%, from £485million to £566million for the first phase of development.
This had been because of delays in pipeline work plus development drilling after the installation of the Breagh platform last year.
Sterling has said its proven plus probably share of reserves in the first phase of the Breagh development is estimated at 28million barrels of oil equivalent.
Previously drilled wells 42/13-3 and 42/13-5Z, suspended for future use as early development wells, will be re-entered and sidetracked to re-drill the reservoir interval.
Following the recompletion of these two wells, up to eight new development wells are expected to be drilled, completed and put on production over the next two years, in line with the approved field development plan.
The Breagh Alpha platform situated in the western region of the field will collect gas from the wells.
Gas will be exported through the 62-mile pipeline to Coatham Sands, Redcar, and a 6.3 miles onshore pipeline for processing at the Teesside Gas Processing Plant at Seal Sands.