BP, on behalf of co-venturers Shell and Siccar Point Energy, announced that it started production to the redeveloped Schiehallion Area, following completion of the multi-billion-pound Quad 204 project in the west of Shetland region, offshore UK. UK project is the third of seven new upstream major projects expected to come on stream for BP in 2017.
According to the company’s statement, Schiehallion and the adjacent Loyal fields were first developed in the mid-1990s and have produced nearly 400 million barrels of oil, since production started in 1998. The fields’ redevelopment through the Quad 204 project is expected to unlock a further estimated 450 million barrels of resources, extending the life of the fields out to 2035 and beyond. Production from the project is expected to ramp up to a plateau level of 130,000 barrels of oil per day.
The company said that it is planning to double its UK North Sea production to 200,000 barrels of oil equivalent a day (boe/d) by 2020 and sustain a material business in the region for several decades. Production from the new Clair Ridge major project is expected next year. Over the next 18 months, BP plans to participate in up to five exploration wells in the UK, in addition to drilling approximately 50 development wells over the next 3-4 years.
In addition, the project has included the construction and installation of the world’s largest harsh water floating, production, storage and offloading (FPSO) vessel – the ‘Glen Lyon’ -an upgrade and replacement of subsea facilities and a continuous drilling programme of up to 20 new wells to enable the full development of the reserves.
Bob Dudley, BP Group Chief Executive, said: “The start of production from Quad 204 – one of the largest recent investments in the UK – is an important milestone for BP, marking a return to growth for our North Sea business.”
Mark Thomas, Regional President for BP’s North Sea business, said: “In safely delivering first oil from the Quad 204 project, we have succeeded in one of the largest ever UK mid-life offshore redevelopments.”
