CNR International is preparing to invest US $470 million to extend the life of one of Ninian Field—one of the oldest fields in the North Sea after the UK government approved an application for a Brownfield Allowance for the ambitious project.
The operator said the decision to grant the allowance for its Ninian Field will create jobs, add reserves and bolster Ninian’s economic life. The Brownfield Allowance scheme provides tax incentives for investment in existing North Sea fields which meet government criteria, designed to enable projects that are economic but non-commercial to proceed.
The company plans to drill four new production wells and four new injectors, conduct two well upgrades and invest in the platform. This major program of work will extend the life of the Ninian field, enabling an incremental 27 million bo/e to be produced. The program demonstrates the operator’s commitment to the North Sea, with further investment in its assets scheduled if further Brownfield Allowance applications are successful.
James Edens, CNR International’s managing director,said: “As a result of this investment, we forecast that the company’s North Sea production will increase in the coming years. With the assistance of the Brownfield Allowance, we are now able to embark on this phase of Ninian’s late life extension program, realizing remaining reserve potential and extending field life.”
“Ninian is a further example of how we are able to recover more oil from mature assets through a combination of innovative ways of working and technical expertise. It also demonstrates the benefits of the Brownfield Allowance, and reinforces CNR International’s long-term commitment to the North Sea."
The late life extension program will see contracts for the work being awarded to several companies across the supply chain, safeguarding and creating hundreds of jobs in the sector.
“Given that oil and gas will still be needed to provide 70% of our energy needs into the 2040s, (the extension) reinforces the importance of continued constructive engagement between the industry and Treasury to ensure that the recovery of the UK’s oil and gas resources is maximized in the coming decades,” said Mike Tholen, Oil & Gas UK's economics and commercial director.
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