UK: Orcadian Energy Gets OGA Nod for Pilot Oil Field Development Concept

Thursday, December 2, 2021

The UK Oil and Gas Authority has granted Orcadian Energy a “Letter of no objection” related to the oil and gas company's development concept for the Pilot field in the UK North Sea.

The letter signals the finalization of the “Assessment phase” and the entry into the “Authorisation phase” of development planning for the Pilot Field.

Orcadian's development concept for the Pilot field is based upon the use of polymer flooding to maximize economic recovery, implemented using an FPSO, two wellhead platforms, and over thirty production and injection wells. 

Energy requirements for the development are to be largely supplied by a floating wind turbine unit supplemented by associated gas, the company said.

"The facilities concept delivers a well-optimized process heat management scheme and includes a local wind power system, with highly efficient backup gas engines, to significantly reduce emissions. Scope 1 and Scope 2 emissions over the life of field have been estimated, by the Company’s client engineers Crondall Energy, to be 2.6 kgCO2e per barrel, about an eighth of the North Sea average emissions in 2020: 20.0 kgCO2e/boe, and less than half of the lowest emitting oil facility currently operating on the UKCS," Orcadian said.

FPSO Selection Crucial

Orcadian is now preparing a plan to advance the FDP and progress the project through the Authorisation phase, with a particular focus on securing a contract for the provision of an FPSO.

The company has engaged Crondall to assist with the FPSO deal and a shortlist of three providers has been identified.

"The Directors believe this vessel selection to be a crucial step in the process of finalizing the basis of design for the rest of the development at Pilot and the commercial terms offered by the contractors will fundamentally define the capital requirements of the project. Further updates will be provided as appropriate," Orcadian said.

Steve Brown
, Orcadian’s CEO, said: "The letter of no objection for the concept select study from the OGA is a really important step in the progress towards the development of the Pilot Field. This is also particularly pleasing for us given the extensive work that the team have done to address the net-zero aspects of the development.  We believe the plan that we have developed, once executed, will ensure that the Pilot Field emissions will lie in the lowest 5% of global oil production, an incredible achievement and one in keeping with the drive to net-zero whilst continuing to ensure energy security in the UK. We look forward to continuing to work with the OGA and our other partners in taking this development forward.”

Orcadian was awarded the P2244 license containing the Pilot field in 2014 in the 28th licensing round. The Pilot field was discovered by Fina in 1989 after a successful well on the Harbour field which proved up mobile oil in the Eocene Tay sands.

According to info on Orcadian's website, Pilot has been estimated to hold 263 mmbbls of oil in place with proven plus probable reserves of 79 mmbbls based upon a low salinity polymer flood.

Categories: Activity UKCS North Sea FPSO Floating Production Production Industry News Energy Offshore Wind

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