Total North Sea Exploration Well Could Hold 100million Barrels of Oil
French oil major Total plans to drill an exploration well at its Sween site in the British part of the North Sea, it announced on Thursday, expanding near its existing infrastructure in defiance of weak oil prices.
A spokesperson for Total said the well is believed to hold up to 100million barrels of oil equivalent
Total said it will start drilling in the third quarter at the prospect located 150 kilometres east of the Shetland Islands and near its Alwyn platform.
The North Sea is one of the oldest and therefore costliest areas to look for oil, resulting in a sharp reduction in exploration and output in recent years.
British Prime Minister David Cameron, visiting Britain’s oil capital Aberdeen, announced another 20-million-pound ($29 million) funding round for seismic surveys, aimed at encouraging more exploration work.
He also announced the appointment of a cross-governmental oil and gas ambassador whose role will include helping British oil and gas businesses find new export markets.
An exploration permit, for the Sween prospect, was awarded in December 2014 during the 28th Offshore Licensing Round.
Elisabeth Proust, managing director of Total E&P UK, said: “It is a particularly challenging time for the offshore industry where every penny counts. Nevertheless, we will continue to look for opportunities to improve our position and thereby create value.
“In this context, I am pleased to be able to confirm Total’s commitment to continue exploring UK waters and delighted that the Prime Minister, David Cameron, has been able to join us today.
“I have a strong team with me at Total E&P UK and today’s announcement would not be possible without their hard work and dedication.”
The Sween prospect is located in water depths of 100m, 150km east of the Shetland Islands and about 80km from the Total-operated Alwyn platform.
Total said if the exploration is successful, Ttoal will consider a development of Sween through a tie-back to existing Total facilties.
It is expected it will create additional value by extending the operations of such facilities.
Last year Us oil and gas company Apache said it had made significant discoveries in the North Sea in both the Beryl and Forties field which could up to 70million barrels of oil equivalent.
The US explorer said two discoveries were made on two exploration wells in the Beryl area as well as further discovery 50 miles south of the company’s Forties field.
Apache said it also drilled two development wells in the Beryl area from which no reserves have previously been booked.
Scotland, and particularly Aberdeen, has been hit hard by the slump in oil prices that has resulted in around 10,000 job cuts.
Source: www.hellenicshippingnews.com
