Heerema wins Maersk Culzean contract

October 15, 2014

Maersk Oil North Sea UK Ltd. awarded Heerema Hartlepool Ltd. a contract for the engineering, procurement and construction (EPC) of the Culzean development’s well head platform (WHP) jacket.

Maersk’s proposed Culzean development. Image from KBR Training Solutions.
 

Maersk says it was a “competitive process” in choosing the winner. The contract is expected to be ready for sail away ahead of drilling on the project in 2Q 2016, which is subject to a final investment decision in 2015.

Heerema will build the WHP jacket and piles, the well head access deck and access ways. Maersk says the well head access deck and access ways will be fabricated in Hartlepool, and the WHP jacket will be built in Vlissingen in the Netherlands.

The Culzean is an ultra high-temperature, high-pressure development located in the North Sea Block 22/25a. First gas is due in 2019 from a new three-platform installation, including a 12-slot wellhead platform in 88m water depth. The reservoir is approximately 4300m below sea level and about 170°C, some 242km from Aberdeen in the central North Sea. 

Maersk expects the plateau production to be in the range of 400 to 500MMscf/d, which represents its equity production of 30,000 to 45,000boe/d. 

“The Culzean project continues to progress well,” says Martin Rune Pedersen, Maersk Oil UK managing director. “This award has been made on schedule and three weeks after steel cutting began on the heavy duty jackup rig which will commence drilling in 2Q 2016, subject to final approvals.”

Hercules Offshore Inc. will provide the jackup for the Culzean project.

In July, OE reported the rise in high-pressure, high-temperature developments in the UK North Sea. Some of the projects covered include BG Group’s Jackdaw discovery, Total E&P UK’s Elgin Franklin development and Maersk’s Culzean.

“The Culzean project has the potential to meet around 5% of UK gas demand in 2020/21, and would not be possible without the government’s ultra high pressure, high temperature cluster area allowance,” says Priti Patel MP (Member of Parliament), Exchequer Secretary to the Treasury. “The new allowance builds on the existing work that the government has done with industry through field allowances, which has helped create new jobs through record levels of investment. Oil & Gas UK estimates the government’s allowances directly incentivised £7 billion (US$11.1 billion) of investment last year.”

Maersk Oil UK is the operator of the Culzean development with a 49.99% interest with partners JX Nippon (34.01%) and Britoil (BP) (16%). 

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