Petrofac plans Don development

Petrofac has signed an agreement with Sea Production, a subsidiary of Northern Offshore, to provide the Northern Producer floating production facility for use in new developments in the North Sea.

The Northern Producer, which will be deployed between West Don and Don South West fields, approximately 150km north east of the Shetland Islands, has a capacity of 55,000 barrels of oil per day plus associated gas, water injection and export processing facilities. The vessel receive and process production from both fields before exporting them by offshore tanker or via nearby infrastructure.

Field development programmes for both fields have been submitted to the department of Business Enterprise and Regulatory Reform. Approval is expected to be received during the first half of 2008, pending environmental consultation.

Petrofac has contracted the John Shaw semi-submersible drilling rig for a seven well drilling programme on the fields. The total cost of the Don SW and West Don developments is estimated at £360m, with the first oil expected in 2009.

Bill Dunnett, executive vice president of Petrofac’s Energy Developments division, said: ‘Petrofac’s knowledge of the Northern Producer made this a compelling solution when combined with the innovative leasing arrangement which allows costs to vary with oil price and throughput, aligning all parties to maximise production. Securing the John Shaw rig for the development also gives us confidence in our project schedule and capital costs.’