New North Sea player Siccar Point Energy Limited (SPE) and service giant Baker Hughes, a GE Company (NYSE:BHGE), have agreed plans for the development of the Cambo field, near Shetland.
The field is located north-west of islands in the UK at a water depth of 1,100m, one of the deepest fields in Northern Europe yet to be developed. Over 100 million barrels of recoverable resources have already been discovered.
BHGE has been selected as the exclusive supplier to support the appraisal and early production phases of the project, with the ability to extend into the full field development.
The scope of supply will include a full suite of well services solutions for the appraisal well and provision of subsea production equipment and flexible pipes in partnership with Ocean Installer, for the early development phase.
The agreement between BHGE and SPE represents an “innovative alliance based on a collaborative approach”, the firms said in a joint statement.
The model aims to reshape traditional, transactional relationships between suppliers and operators in favour of a long-term partnership.
This minimizes tendering costs, improves execution efficiency and risk mitigation, and incentivises performance through the creation of shared project objectives.
Jonathan Roger, chief executive of SPE, said: “We are delighted to be collaborating with BHGE on the development of the Cambo field.
“By shifting to an innovative, performance-based commercial model focused on long-term collaboration and a full-life-of-field partnership between SPE and BHGE, we are redefining how the industry can operate, proving the viability of challenging regions and the long-term sustainability of projects in the North Sea.”
Zvonimir Djerfi, BHGE Europe President, added: “This agreement puts BHGE’s integrated scope of capabilities and extensive portfolio into action and is further testament to our fullstream capabilities for the offshore oil and gas industry.
“By engaging early in the project’s lifecycle to better define technical and commercial drivers, we can help SPE simplify the process, driving cost-effectiveness and flexibility, while maintaining the highest safety standards and quality required in this challenging deepwater environment.”
SPE’s 100 percent owned Cambo field is located 125km north-west of the Shetland Islands.
The firm acquired the field with the takeover of the OMV portfolio in January 2017.
Cambo was discovered in 2002 and has five wells drilled into the structure so far.
The development concept will be focused on a two-phase approach.
Phase 1 will be an early production system (EPS), followed by a Phase 2 full-field development.
The initial plan is to drill an appraisal well into the main reservoir sequence and perform an extended well test, which will take place in 2018 and provide key information for the facility design.
“An alliance like this enables us to improve execution efficiency and risk mitigation through the creation of shared project objectives, and minimize tendering costs, with the ultimate objective of creating more efficient subsea solutions,” says Steinar Riise, chief executive of Ocean Installer.
“We are delighted that Siccar Point has chosen to work with us. With several other upcoming projects in the pipeline, we hope this will be the first of many jobs we win with Siccar Point. We also look forward to working together on this project as part of a long-term collaboration with BHGE.”
The construction support vessels Normand Vision and Normand Reach will be utilised for the offshore execution.