Jersey Oil & Gas plc (JOG) and NEO Energy have acquired the ‘Western Isles’ floating production, storage and offloading vessel to redevelop the Buchan field.
PREPARATIONS
In operation since early 2017, the processing facility is owned by operator Dana Petroleum (E&P) Ltd (76.9188%) and NEO (23.0812%).
The vessel is scheduled to come off station from the Western Isles fields around the second half of 2024.
JOG is also due to receive $9.4 million cash from farm-out partner NEO for the finalisation of the FPSO transaction.
Field operator NEO will prepare the FPSO for Buchan by installing water injection booster pumps, produced water injection modifications and preparations for future electrification.
The modifications are expected to complete by early 2026 for the vessel’s deployment to the central North Sea field and hooked up for the start of production anticipated in late 2026.
The companies have also agreed to acquire the 76.9188% interest in the vessel subject to paying for the vessel’s storage from the date of handover, expected H2 2024, and approval of the Buchan field development plan.
JOG said that work was progressing on front-end engineering and design (FEED) activities for the FDP to be submitted for approval in 2024.
The environmental statement and the draft FDP for the Buchan redevelopment are expected to be submitted to the North Sea Transition Authority before the end of 2023.
Following the start of production the Verbier and J2 discoveries within the Greater Buchan Area licence area will be tied back, with the potential for regional third-party discoveries to follow suit.
NET ZERO
Chief executive officer Andrew Benitz added that finalising the terms for acquiring the FPSO was a tremendous milestone for the project.
“Re-using existing high-quality infrastructure and modifying it to be electrification-ready is exactly in line with our stated low carbon strategy and the net zero related objectives of the industry.
“The vessel is the cornerstone to completing the engineering work required to facilitate FDP approval for the Buchan redevelopment next year.”
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