British Gas plc has begun commissioning work on an integrated deck to be installed as part of Armada platform on U.K. North Sea Block 22/5b early next year.
The £50 million ($75 million) topsides will weigh 10,000 metric tons and is being built at the Kvaerner Oil & Gas Ltd. fabrication yard at Methil, Scotland (left photo above).
British Gas said the deck is 85% complete. It is designed to produce as much as 450 MMcfd of gas and 26,000 b/d of condensate from Fleming, Drake, and Hawkins fields.
The fields have combined estimated reserves of 1.2 tcf of gas and 50 million bbl of condensate, plus a further 20 million bbl of natural gas liquids expected to be recovered in processing.
Armada's 6,000 metric ton jacket is being built by the Barmac joint venture of Brown & Root Ltd. and McDermott Marine Construction Ltd. at Ardersier yard, near Inverness, Scotland (right photo above).
First gas is anticipated in October 1997, and production is expected to last 15-20 years. Reflecting U.K.'s liberalized gas supply market, gas sales contracts have only been secured for 5 years.
David Varney, chief executive-designate of British Gas's TransCo International gas supply unit, said, "This was what could be achieved commercially at the time.
"The contracts have fixed gas prices for 5 years, but after this partners will have to compete in the spot market. This was a major reason for reducing Armada development and operating costs."
British Gas expects these costs to set a new low mark for the U.K. offshore industry. The company expects Armada's exploration and development costs to be $4/bbl of oil equivalent (BOE), and operating costs to be "well below" $3BOE.
In early November, British Gas let a £6 million ($9 million) contract to Nomis Shipping Ltd., Aberdeen, for rescue and standby vessel services. The 5-year contract will see Dea Skipper rescue/standby vessel deployed alongside Armada platform.
Armada partners are: operator British Gas 45.27%, Amoco (U.K.) Ltd. 18.2%, Fina Exploration Ltd. 12.53%, Phillips Petroleum Co. U.K. Ltd. 11.45%, Yorkshire Energy Ltd. 6.97%, and Agip (U.K.) Ltd. 5.58%.
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