North Sea production shut-in due to a "hairline" crack in a pipeline is costing operators US$26.68 million a day in lost production, according to industry body Oil & Gas UK.
The crack was found last week in an onshore section of the 235mi-long Forties Pipeline System (FPS), which in 2017 brought 40% of North Sea oil from more than 80 assets onshore to Scotland. Despite depressurizing the pipeline, the crack spread and operator INEOS decided to shut down the system for repairs.
Deirdre Michie, Chief Executive of Oil & Gas UK, said: “The shutting down of the Forties pipeline does cause significant issues for our industry, financially, operationally and commercially – 40% of oil production is now shut in and the resulting lost production is worth around £20 million ($26.68 million) per day at current oil prices to industry. We hope this can be resolved safely and as quickly as possible.”
The FPS is a major trunkline, bringing ashore some 400,000 b/d and 1.2 Bcf of gas (10% of UK demand) from 85 producing assets in the North Sea, including the UK's two largest producers - Buzzard (pictured, right), operated by Nexen, and Forties, operated by Apache.
Read more
Hairline crack shuts in 400,000 b/d of UK North Sea production
Subscribe
