Serica Energy plc has been awarded 100% of block 29/2a, containing the decommissioned Kyle oil field, in the UKCS 33rd offshore licensing round.
STUDIES
The North Sea Transition Authority made the award to the company’s subsidiary Tailwind Energy Chinook Ltd, subject to licence documentation.
Serica said its internal preliminary mid-case estimate of recoverable resources after redevelopment of Kyle is about nine million barrels of oil.
Production from the central North Sea field stopped in June 2020 and the host floating production storage and offloading was removed.
During the first two years of the licence period, Serica will conduct studies on the feasibility of re-developing the field via a subsea tie-back to the Triton FPSO vessel via the Bittern field facilities.
The company holds a 46.42% interest in the Triton FPSO vessel and 64.63% in the Bittern field, both operated by Dana Petroleum.
“A key aspect of Serica’s strategy is maximising the utilisation of existing infrastructure associated with its Bruce and Triton production hubs,” added chief executive Mitch Flegg.
“An important element of this is adding hydrocarbon throughput from new sources as well as enhancing the contribution from fields that are already producing.
“This licence award adds another potential project to our hopper of near- and in-field opportunities.
“The decision whether to proceed with the re-development of Kyle will depend on the results of our studies and the fiscal and regulatory situation at the end of the initial two-year term of the licence.”