Xcite, Shell, Statoil join forces

OE Staff
Tuesday, May 6, 2014

UK heavy oil explorer Xcite Energy has entered into a collaboration agreement with Statoil and Shell over the Bentley and Bressay fields in the North Sea.

The move could see the two heavy oil fields developed using the same infrastructure and follows the decision to “re-evaluate” the development concept for Bressay in November last year.

The agreement, announced 6 May, allows Shell, Statoil, and Xcite's subsidiary Xcite Energy Resources (XER), to make available and share field-specific technical and operational information for the evaluation of potential synergies and collaboration between the heavy oil Bentley and Bressay fields.

A joint XER, Statoil, and Shell team will work together to analyze the current available information and develop a number of proposals for assessment, including the potential utilization of common infrastructure, assets, and operational solutions during the phased development of Bentley and the future development of Bressay.

In a statement, Xcite said: "XER believes that collaboration in a number of key areas, along with a coordinated approach to an area development, will realize a number of mutual opportunities which have the potential to benefit all stakeholders."

Rupert Cole, CEO of Xcite Energy, said: "We are pleased to continue to work  with Statoil and Shell in this important initiative and, following their purchase of the Bentley extended well test data in 2013, believe that it demonstrates the value that independent oil companies can bring to the North Sea to unlock major energy assets. We also believe that the principles contained in this collaboration agreement complement the recent UK Government commissioned report, 'UKCS Maximising Recovery Review' by Sir Ian Wood, and will provide an important early framework through which additional value can be captured in area development scenarios." 

Read more: Arup platform for Xcite's Bentley, Xcite signs Bentley FSU MOU, 

Categories: North Sea Europe

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