UK: Hurricane Energy Hires Stena Drilling Rig to Plug Lincoln Well

UK-based oil and gas company Hurricane Energy has hired the Stena Don semi-submersible drilling rig for the plugging and abandonment of its Lincoln-14 offshore well west of Shetland.

The Lincoln-14 well, formally named the 205/26b-14,  is located in the P1368 (South) license in the Greater Warwick Area ("GWA"), which Hurricane operates on behalf of the GWA joint venture (Hurricane 50%, Spirit Energy Resources Limited 50%).

Hurricane Energy has previously said that the GWA joint venture has a regulatory obligation to plug and abandon the Lincoln-14 well by October  31, 2021, and that a rig had been contracted by Hurricane, as a licence operator, for this purpose.

"The company can confirm that the Stena Don semi-submersible rig is now on hire. The Lincoln-14 plug and abandonment is scheduled to take c.20-25 days to complete with a gross budgeted campaign cost of c.$13 million (net $6.5 million to Hurricane)," Hurricane Energy said.

Hurricane Energy, which produces oil from its Lancaster field west of Shetland, recently stated that it faces a business wind-down unless it can reach an agreement with FPSO owner Bluewater for a shorter charter renewal for the Aoka Mizu FPSO than originally arranged.

The company, which started producing from the Lancaster field west of Shetland in 2019 using the FPSO, said earlier in June it would not extend the charter of the Aoka Mizu FPSO for a period of three years from June 2022 to June 2025 "on current terms."  

However, Hurricane, which last year significantly downgraded Lancaster reserves estimate, said that it was open to a shorter FPSO extension. If a deal is not reached, this could lead to a wind-down of the company's business.

While the talks over the terms of the extension are still ongoing, Bluewater is free to market its FPSO Aoka Mizu to other potential clients, with availability as of June 2022. 

Bluewater may also agree terms with Hurricane Energy for a somewhat longer stay on the Lancaster location, a Bluewater spokesperson told Offshore Engineer via email last week.

Hurricane Energy on Wednesday issued an update on Lancaster production, too.

The company said it has successfully restarted the electric submersible pump in the Lancaster 205/21a-6 ("P6") well.

 "Once stabilized, the company intends to target oil production from the P6 well at a rate of c.11,000 bopd, being a similar level to that achieved immediately prior to the trip on 8 June 2021. Thereafter, oil production from the P6 well is expected to continue declining. A further operational update will be announced in early July, in line with the company's recent reporting framework," Hurricane said.

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