Premier Oil has pushed back the timeline for sanctioning its Tolmount East development in the North Sea.
The project, an extension to the main 500bcf Tolmount project, was due to be sanctioned in the latter half of 2020, but is now “aiming for sanction in first half 2021”, according to Premier.
Announcing the commercial discovery of Tolmount East in 2019, Premier Oil said the well had been targeting 220billion cubic feet of gas (bcf) of P50 (best estimate) resource in an undrilled area more than two miles east of the main project.
In an update to the OGA website, Premier Oil said: “The modest gas accumulation will be tied back via subsea pipeline the Tolmount facilities which are currently under construction.”
Up to two wells will be drilled for the development.
In November, Premier Oil said it was in “final negotiations” with contractors ahead of making a final investment decision on Tolmount East.
“Once on-stream, Tolmount East will help extend plateau production from the Tolmount Area”, it said, while Premier is also looking at other prospects which may feed into the main area infrastructure.
The Tolmount project, which began installation and drilling work at the end of last year, is targeting first production in the second quarter of this year.
Harbour Energy will become the operator once Premier Oil completes its merger with Chrysaor, making what will be the largest-producing North Sea oil firm.
Last week it was revealed that KNOC, owner of Dana Petroleum, is seeking to sell off a 10% stake in Tolmount.
The firm owns a total of 50% of the southern North Sea gas project, which lies around 40 miles east of the Yorkshire coast.
Dana has said the Tolmount field, in the Southern North Sea, is expected to produce around 90 million barrels of oil equivalent (boe) gross over its lifetime, with Dana’s net share being 28,000 boe per day at its peak.