DEVELOPMENT PROJECTS SHOW PROGRESS IN NORTH SEA

More oil production is due on stream in the North Sea.

In Norway, Norske Shell AS has mated topsides and gravity base structure of a giant platform destined for East Troll field in the Norwegian North Sea, after delays caused by storms in the region.

The Norwegian Contractors unit of Aker AS, Oslo, completed mating of the deck and base just after midnight Jan. 27 in Norwegian shallow water. The process began early Jan. 25.

In addition, Texaco Inc.'s British unit received approval from the U.K. Department of Trade and Industry to proceed with development of Captain field in the North Sea.

In other action:

Amerada Hess Ltd. switched oil production in Hudson field in the U.K. North Sea to nearby Tern platform from a production ship in use for 18 months. Amerada began sending oil to Tern Jan. 29. Production using the Petrojarl I vessel stopped Jan. 26.
North Sea oil production averaged a record 5.32 million b/d in 1994, with Norwegian and Danish output on a high and U.K. production near an earlier peak.
Amoco (U.K.) Exploration Co. let an 8 million ($12 million) contract to Ralph M. Parsons Co. Ltd. for work on expansion of the Central Area Transmission System (CATS) gas terminal at Teesside, England. The contract is for project management, detailed design, procurement, and construction management in a project budgeted at a total 80 million ($120 million).
Norway's Ministry of Industry & Energy put up 56 exploration blocks for offer under the country's 15th offshore licensing round.

EAST TROLL PLATFORM

Shell said the most critical part of the mating operation for the East Troll platform occurred when the deck passed over the top of the 369 m high base's four shafts, which had been sunk to leave only 6.5 m protruding from the water.

Once the deck was in position, water was pumped from two of the shafts to lift the base and thus transfer the weight of the topsides from the four barges on which it had been transported.

The barges were towed away by four tug boats and the platform raised until the base of the deck was 30 m above sea level.

Shell said time loss for bad weather had been built into the schedule so development would not be delayed.

Hook-up of topsides to base has begun and is expected to be finished in May. Then the platform will be towed out to Block 31/6 from its current location in a deep fjord at Vats, north of Stavanger.

CAPTAIN FIELD

Government approval for Texaco's Captain field development follows a $500 million contract let in December 1994 to a joint venture team of contractors for design, procurement, construction, and installation of facilities for the field. Texaco holds a 100% interest in the field.

Captain field lies on Block 13/22a, 90 miles northeast of Aberdeen, in the Inner Moray Firth. Estimated recoverable reserves of more than 300 million bbl of oil and 53 bcf of gas lie in unconsolidated sand about 3,000 ft below sea level in nearly 350 ft of water.

Field development will cost about $800 million. Production is to begin in late 1996.

Plans call for a wellhead protection platform tied into a floating production, storage, and offloading (FPSO) vessel.

The FPSO will process about 60,000 b/d and will be able to handle as much as 140,000 b/d of produced water. A dedicated shuttle tanker will transport the oil to shore.

Texaco will use extensive horizontal drilling, with sections as long as 6,000 ft.

The joint venture partners for construction of facilities for the project are ABB, Coflexip-Stena Offshore, Astano, and UiE Scotland Ltd.

HUDSON FIELD

Amerada said Petrojarl I recovered 17.4 million bbl of Hudson field's estimated 86 million bbl oil reserves at an average 32,900 b/d.

Production via Tern platform, operated by Shell U.K. Exploration & Production, is expected to average 38,000 b/d.

Hudson field, in Block 210/24a, went on stream July 19, 1993, with oil production from two subsea wells at first. Gas lift was added in April 1994.

Now production will be from six subsea wells, sending oil via a manifold and three flow lines to Tern platform 11 km east.

Petrojarl I has been chartered by ARCO British Ltd. to develop Blenheim field in U.K. Block 16/21b.

Blenheim holds an estimated 25 million bbl of oil reserves. First oil is expected early this year, with field life estimated at 3-4 years (OGJ, May 23, 1994, p. 23).

NORTH SEA OIL PRODUCTION

In a breakout of North Sea oil flow, Wood Mackenzie Consultants Ltd., Edinburgh, said Norway produced an average 2.67 million b/d for the year, up 12% from the average achieved in 1993.

Danish production was up 11% at an average 185,000 b/d, while output from the Netherlands jumped 89% to an average 58,000 b/d.

U.K. offshore production averaged 2.4 million b/d in 1994, while British onshore output averaged a record 100,000 b/d. Combined offshore and onshore production was 25% ahead of 1993.

Total U.K. oil production for 1995 will average almost 2.65 million b/d, said Wood Mackenzie, and should equal or slightly exceed the previous U.K. record of a little more than 2.6 million b/d in 1985.

However, the firm said, increases beyond 1995 are unlikely to be significant and during the next few years production should continue at about 2.6-2.7 million b/d, as declining volumes from mature fields are replaced by new production from fields such as Captain and Foinaven.

CATS TERMINAL

Amoco's terminal expansion, slated for completion in September 1997,will enable the CATS system to deliver 450 MMcfd of gas into British Gas plc's grid

New processing facilities will increase the flexibility of CATS to deliver gas for industrial and domestic markets.

The 250 mile 36 in. CATS pipeline can transport more than 1.6 bcfd of gas to shore from fields connected to the CATS riser platform.

Among new supply sources for CATS, British Gas will send gas ashore from Armada field via the system starting in late 1997. Expected production is 350 MMcfd (OGJ, July 18, 1994, p. 26).

Phillips Petroleum Co. (U.K.) Ltd. next year will begin to send as much as 300 MMcfd through the CATS system from its Judy and Joanne field developments.

Amoco currently processes as much as 300 MMcfd from Everest and Lomond fields. The gas fuels a power station at Teesside.

NORWEGIAN BLOCKS OFFERED

As expected, most of the new Norwegian blocks, 40 in all, are in the largely undeveloped Norwegian Sea off mid-Norway. The rest are in the mature North Sea area.

Applications for acreage are required by June 20. Award of licenses is slated for the fourth quarter.

The ministry said the awards will adhere to recent promises for less direct state interest in new licenses. Also, individual licenses will be split between smaller numbers of companies to yield larger average stakes.

Norwegian Sea blocks on offer are 6202/5, 6, 8, 9, 11, and 12; 6302/4; 5, 7, and 8; 6304/9; 6305/1, 2, 4, 5, and 7; 6404/3; 6405/1; 6504/9 and 12; 6505/7 and 10; 6506/6; 6507/4, 5, and 6; 6508/1; 6510/1 and 2; 6604/2 and 3; 6610/1; 6704/12; 6705/10; 6706/11 and 12; 6707/10 and 11; and 6710/6 and 10.

North Sea blocks on offer are 24/6, 9, 11, and 12; 25/4 and 7; 30/11; 32/1, 2, 4, and 5; 33/5 and 6; 34/4; and 35/2 and 5.