Viaro Energy has outlined £500m spending plans in the UK sector, including new developments in the West of Shetland and Southern North Sea.
The firm, majority owned by CEO Francesco Mazzagatti, said it would get after a collection of targets, acquired after its takeover of Spark Exploration in February this year, in the Shetland region.
Tuck, Boulmer, Cherry and Sammy
“Tuck” will be developed first at a £208m net cost to the company, targeting first gas in 2028, said accounts published by its parent firm.
It has an estimated 87 million barrels of oil equivalent recoverable, Viaro said.
The firm is 50% licence holder, with the remainder held by Ithaca Energy, operator of the nearby Cambo oilfield. The overall project is projected at £416m.
The licence also includes a 50% stake in each of the Boulmer, Cherry and Sammy exploration prospects, which include prospective resources totalling 280m barrels net to the company.
Development would boost Viaro’s assets in the region, already owning various stakes in projects in the TotalEnergies-operated Greater Laggan Area.
Southern North Sea
Elsewhere, Viaro said development of the Anning and Sommerville gas fields in the Southern North Sea will cost an estimated £351m to reach first gas by Q4 2024.
Viaro acquired a 60% stake in the P2607 licence for the fields, estimated to contain 52m recoverable barrels of oil equivalent, from Hartshead Resources in March.
The £351m is for phase 1 to first gas, while the licence also includes phase 2 for the Hodgkin and Lovelace fields, estimated to contain 23m barrels of recoverable oil equivalent.
Viaro Energy Accounts
Despite high oil and gas prices hugely bolstering revenues, Viaro Investment Limited, the ultimate parent, took a loss for the year to December 31, 2022 of £107.4m, compared to a £585.7m profit in 2021.
Revenues climbed from £360m in 2021 to nearly £875m in 2022 on stronger commodity prices.
However production costs and depreciation of assets played a role in denting pre-tax profits, which stood at £341.9m (2021: £703.5m).
It also recognised significantly higher taxes in 2022 at £429.9m, compared to just £53m in 2021, including recognition of £177m over the UK windfall tax.
The firm, which owns RockRose Energy, has stakes in several North Sea oil and gas assets, including Shell’s Nelson facilities, Blake and Ross owned by Repsol Sinopec, and the Greater Laggan Area in the West of Shetland operated by TotalEnergies.