The Parkmead Group plc has been formally awarded 50% of the Fynn Beauly heavy oil discovery, estimated to hold oil-in-place of 740 million to 1.33 billion barrels, in the Outer Moray Firth.
UNCERTAINTIES
The operator will share licence P2634, comprising blocks 14/15a, 14/20d and 15/11a, with Orcadian Energy plc who holds a 50% interest.
An approved three-year programme includes geophysical, geochemical, reservoir modelling and production technology studies to assess the feasibility of reducing oil viscosity using enhanced oil recovery techniques.
This also involves the potential combination of polymer flooding with geothermal heat uplift to improve recovery.
“Parkmead’s board is very conscious of the current uncertainties around the new UK Government’s intentions in respect of future oil and gas projects and developments in the UK North Sea,” added executive chairman Tom Cross.
“The team will evaluate whether it can deliver a commercial development of the major Fynn Beauly accumulation that also meets the overarching net zero objectives that are key to obtaining the relevant regulatory approvals.
“The board believes that this licence offers Parkmead and its investors access to huge potential upside, via one of the largest remaining oil resources left on the UK continental shelf.”
The award, previously offered provisionally, is part of the 33rd UK offshore licensing round.