Jersey Oil & Gas (JOG) said that its concept select report showed a potential 172 MMboe of 2C contingent resource estimates, to be delivered via platform electrification, in the Greater Buchan Area (GBA) in the Central North Sea.
PROJECT
The company estimates that overall carbon emissions from the GBA with platform electrification will be <1kg/boe.
Production from the GBA would be delivered in a similar way to fields in the Norwegian sector of the North Sea.
JOG added it was ready to farm out the project and expected a great deal of interest from many oil companies.
The company aims to resume production from the J2 and Verbier oil discoveries as well as other existing and possible discoveries within the GBA.
A three-phase development centres on a single integrated wellhead, production, utilities and quarters platform located at the Buchan field – the GBA hub.
The development concept is based on P50 technically recoverable resource estimates of, in aggregate, 172 MMboe of light sweet crude and associated gas within the Core GBA, which includes the Buchan oil field and J2 and Verbier oil discoveries.
ECONOMICS
JOG estimates that the project economics for the Core GBA using platform electrification are pre-tax free cashflow of $6.4 billion with an NPV (pre-tax) of $1.7 billion.
The payback period is under three years with the project internal rate of return (IRR) greater than 25%.
Development costs (capex and opex) based on today’s values are estimated to be around $30/boe.
Capex estimate for Phase 1 is approximately £1 billion (including 20% contingency); opex estimate during plateau production is $8/boe to $9/boe.
PRODUCTION
The GBA hub nameplate capacity has been set at 40,000 barrels of oil per day (bopd) with expected plateau production of more than three years.
JOG added that there was significant upside potential from four drill-ready exploration prospects that have combined prospective resource estimates totalling an additional 219 MMboe.
The close proximity of the GBA exploration prospects, will enable their development as low cost sub-sea tie-backs to the planned GBA hub.
Chief executive Andrew Benitz said that the company was on course to deliver the concept elect to the Oil and Gas Authority by July this year.