Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Dana took £45m hit in pull out of North Sea gas project

© Dana PetroleumParkmead Platypus
An artist impression commissioned by Dana Petroleum of the Platypus project

Dana Petroleum took a £45 million write down after its shock exit from the Platypus development in the North Sea.

Accounts filed with Companies House for full-year 2020 also reveal the company made a £551 million pre-tax loss for the year, compared with a pre-tax profit of £100m in 2019.

Dana, owned by the Korean National Oil Company (KNOC), saw a 43% drop in revenue between 2019 and the end of 2020, owing to low commodity prices and decreased production.

Within its results, it also records a £45.6 million write down of Platypus, following its decision to exit the licence in late 2020.

The company confirmed the surprise relinquishment of its 59% stake in the field last January, leaving partners Parkmead Group (15%) and CalEnergy (26%) to press on.

With mid-case recoverable resources of 105 billion cubic feet of gas, the partners had intended to develop Platypus as a two-well, subsea tie-back to the Perenco-operated Cleeton platform in the southern North Sea.

At the time, an industry source told Energy Voice that the decision would mean Dana’s reputation with frustrated service companies who were tendering for contracts at the field would be badly damaged.

Parkmead later agreed to become operator and share Dana’s stake with CalEnergy on the project, but despite efforts to come up with a new plan for development, both relinquished the licences back to the Oil and Gas Authority (OGA) in November 2021.

Parkmead recorded a £10.9m impairment as a result.

In a statement at the time, Parkmead added: “Following the unexpected, late withdrawal of Dana Petroleum from the Platypus licence, Parkmead agreed in principle to become the temporary acting operator and entered into commercial discussions with the Platypus supply chain to formulate a revised commercial project that could be put to the regulatory authorities to seek extension of the licence.

“A considered and improved commercial plan was put to the regulator well ahead of the formal end of the licence, however, despite intensive and prolonged discussions it was not possible to arrive at suitable terms for an extension and, although a new licence could be sought in due course, it was ultimately decided by the partners not to pursue the matter further at this time.”

2020 performance

Dana’s group-wide output fell from 57,249 barrels of oil equivalent per day (boepd) in 2019 to 47,150 boepd in 2020, continuing a downward trend seen since 2018, when it produced 65,000 boepd.

As in the previous year, Dana said the production fall was the result of natural reservoir decline and prolonged unplanned outages at its Western Isles floating production storage and offload (FPSO) vessel. Further work was conducted at its Triton FPSO during the year as well, to tackle backlog maintenance.

Dana said it had no debt as of the end of 2021. In January 2022 the company negotiated, via KNOC, a new $300m revolving loan facility with the Export Import Bank of Korea, available until January 2024. Following this Dana made a drawdown request of $30m, which was approved in early February.

In the meantime, the company is awaiting start-up of its flagship Tolmount project, in which it holds a 50% stake alongside operator Harbour Energy, and an equal share of the development’s midstream infrastructure alongside Kellas Midstream.

The partners now expect first gas this quarter, following delays throughout 2021 regarding electrical equipment certification.

In addition, Dana says “excellent progress” has been made at the nearby Tolmount East discovery, where a single subsea well will be tied back to the main Tolmount platform via pre-installed facilities. First gas at the field is targeted for Q3 2023.

Recommended for you

More from Energy Voice

Latest Posts