2014-01-13 13:05:04 -
Chevron North Sea Limited announced today that it has reached a final investment decision and received approval from the U.K. Government to proceed with the development of the Alder Field in the Central North Sea. The project has a planned design capacity of 110 million cubic feet of natural gas and 14,000 barrels of condensate per day. First production is expected in 2016.
“Our decision to proceed with this valuable asset was enabled by the right combination of technology, commercial conditions and knowledge sharing on high pressure high temperature experience. Field development is also being assisted by the enhanced Small Field Allowance introduced by the U.K. Government in 2012, which recognizes the importance of developing small fields in a mature oil
and gas basin,” said Craig May, managing director of Chevron Upstream Europe.
The U.K.’s Minister for Energy, Michael Fallon added: “This is one of the most complex wells to be drilled in the North Sea. It has required the application of extremely complex technology, the majority of which is being provided by U.K. companies and is a showcase of British excellence. Developments like Alder confirm the basin is still vibrant with many opportunities; however the future needs companies of the calibre of Chevron with the expertise and tenacity to drive these projects forward.”
The high pressure high temperature gas condensate field is located in Block 15/29a, in a water depth of 150 meters, approximately 160 kilometers from the Scottish coastline, and 60 kilometers from the U.K./Norway median line.
The field will be developed via a single subsea well tied back to the existing Britannia Platform in Block 16/26, a distance of 28 kilometers, and the well will be drilled with the Blackford Dolphin, which is contracted to Chevron from mid-2015 for a multi-well programme.
Produced fluids will be processed at a new dedicated module to be installed on the Britannia Bridge Linked Platform (BLP), which will be constructed by ConocoPhillips acting as substitute operator on behalf of Britannia Operator Limited. Gas is exported to the Scottish Area Gas Evacuation (SAGE) terminal at St Fergus.
Discovered in 1975, the Alder project has taken many years to bring to economic development. The development of the field has been enabled by innovative technology applications combining to meet the challenges of a high pressure, high temperature reservoir and exporting fluids a distance of 28 kilometers to the Britannia Platform. These include Chevron’s first high temperature high pressure vertical mono-bore tree, vacuum insulated tubing, a reeled 10”/16” pipe-in-pipe system and a High Integrity Pressure Protection System.
Some 75 percent of the development work will be executed in the U.K.
Three major contracts valued at some £200 million were awarded to U.K.
vendors during the course of 2013.
- Detailed engineering, procurement, installation and commissioning of the complete subsea system, including the main subsea manifold, subsea isolation valve manifold, 28 kilometers of pipe-in-pipe flow line, umbilical and tie-in spools, awarded to Technip. This work will be carried out in Aberdeen, Evanton and Newcastle.
- Design, manufacture and supply of two high pressure, high temperature (HPHT) vertical, subsea monobore trees and wellheads, awarded to OneSubsea UK Limited at their Leeds facility.
- Design, manufacture and supply of the subsea control system, including the hydraulic and electrical components to be installed both at subsea and on the Britannia Bridge Linked Platform (BLP), to Aker Solutions at their Aberdeen facility.
Chevron North Sea Limited operates the project and has a 73.684 percent interest, with co-venturer ConocoPhillips (U.K.) Limited (26.316 percent).
Notes to editors
Chevron’s presence in the UKCS spans 50 years, with the company continuing to contribute significant sums to the U.K. economy in terms of base business expenditures, taxation, jobs and technology development, as well as ongoing investments in new operated and non-operated projects. Through this and its international and global operations, which utilize U.K. design, engineering and manufacturing in its worldwide projects, Chevron’s contribution to the U.K. economy is of the order of £10 billion in just the last five years.
Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels.
Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
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Cautionary Statement Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in the United Kingdom. Words such as "anticipates," "expects," "intends," "plans," "targets," "forecasts, " "projects," "believes," "seeks," "schedules, " "estimates," "budgets" outlook" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, many of which are beyond the company's control and are difficult to predict. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations, industry-specific taxes and changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; and general economic and political conditions. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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Chevron North Sea LimitedTracey Miller, Aberdeen+44 1224
: mailto:Tracey.Miller@chevron.com orSally
Jones, London+44 560 109 1435e-mail: JonesS@chevron.com