UK-focused oil and gas company Serica Energy said Tuesday its subsidiary Tailwind Energy Chinook Limited had been awarded an offshore license in the UKCS 33rd Offshore Licensing Round.
Tailwind Energy has secured a 100% stake in the UK block 29/2a. The award is subject to the execution of license documentation.
According to Serica Energy, the Block 29/2a contains the decommissioned Kyle oil field. This field ceased production in June 2020, and the host FPSO at the time was subsequently removed.
Serica will have no obligations in respect of the prior decommissioning as a result of the license award.
During an initial two-year license period, Serica will carry out studies to determine the feasibility of re-developing the Kyle field through a subsea tie-back to the Triton FPSO vessel via the Bittern field facilities.
Serica has a 46.42% interest in the Triton FPSO vessel and a 64.63% interest in the Bittern field. Both are operated by Dana Petroleum. Serica's internal preliminary mid-case estimate of recoverable resources from the redeveloped field is about 9 million barrels of oil.
Mitch Flegg, Chief Executive of Serica commented: "A key aspect of Serica's strategy is maximizing the utilization of existing infrastructure associated with its Bruce and Triton production hubs. An important element of this is adding hydrocarbon throughput from new sources as well as enhancing the contribution from fields that are already producing.
"This license award adds another potential project to our hopper of near- and in-field opportunities. The decision whether to proceed with the re-development of Kyle will depend on the results of our studies and the fiscal and regulatory situation at the end of the initial two-year term of the license."
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