Xcite, Statoil, EnQuest sign collaboration agreement

UK-based heavy oil explorer Xcite Energy has signed an agreement which could pave the way for a common gas export route for the Kraken, Bentley and Bressay heavy oil fields.

The collaboration agreement is between with Statoil and a subsidiary of EnQuest. Statoil operates Bentley and Bressay, while EnQuest is operator on Kraken.

Image: EnQuest's Kraken development. 

The Bentley and Kraken fields are currently under development. Xcite has an agreement to use a self installing Arup design ACE platform for the first phase development on Bentley, which sites in Block 9/3b, license P1078, 8km southeast of the Bressay field. It also has an memorandum of understanding with Teekay for a bridge-linked floating storage, to link with the ACE platform. 

Kraken, which is 15km east of Bentley, is being developed using a floating production unit, based on a tanker being converted in Singapore. 

A development plan for Bressay, which had mirrored plans for the neighbouring, Statoil-operated Mariner field, was put on hold last year to assess alternative plans. Work has started on the Mariner jacket in Spain and its topsides will be built in Korea.

Xcite said: "A joint Xcite Energy Resources, Statoil and EnQuest team will work together to analyse the current available information and develop a number of proposals  to assess the potential benefits of installing a shared gas import pipeline in conjunction with the development of the Kraken, Bentley and Bressay fields."

The agreement follows a collaboration agreement signed in May with Statoil and Shell. This also set out an aim to look at using the same infrastructure to develop Bressay and Bentley. 

Rupert Cole, Xcite's CEO, said: “We are pleased to continue to work with Statoil and extend this to include EnQuest in the assessment of this shared infrastructure.  This new collaboration with Statoil and EnQuest to assess this shared infrastructure is an important initiative, which highlights the scope of potential opportunities available to our respective projects. I believe that today’s announcement further demonstrates that additional value can be created by companies collaborating in key development activities and it reinforces our commitment to “Maximising Economic Recovery” from the area immediately surrounding the Bentley field.”

Read more: A heavy challenge - the Bentley extended flow test

Xcite inks Aibel MOU

Arup platform for Xcite's Bentley

 

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