A company that says it can slash the cost of developing stranded oil and gas fields by using unmanned buoys has agreed the terms to participate in its first development in the North Sea.
Enegi Oil and its partner ABTechnology have signed heads of agreement to acquire a 50% interest in the 10 million barrel Fyne field off eastern Scotland from Antrim Energy in a landmark deal for the champions of buoy technology.
They hope to use a buoy system to bring Antrim into production by November 25, 2016, the deadline agreed with the Government.
Aim-listed Enegi believes the Fyne field could provide the ideal proving ground for buoy technology developed by ABT, which it believes can transform the economics of marginal field.
Many North Sea fields have not been brought into production because they are felt to be too small to make it worthwhile investing in costly production kit such as platforms and pipelines.
Enegi and ABT say it will be much cheaper to use unmanned buoys than conventional techniques. The buoys developed by ABT sit just beneath the surface of the water and can be connected to wells on the seabed. They include facilities to separate oil from gas and to store the output
The proposed farm in deal was announced three months after Antrim shelved plans to develop Fyne using a floating production storage and offloading vessel citing "rapidly escalating costs".
The Canadian registered firm, which is focused on the North Sea, said it believed an FPSO could be used to unlock the potential of other finds in an area where there is limited infrastructure.
Announcing the proposed agreement with Enegi and ABT, Antrim said it was attempting a relatively low cost solution to developing the field.
Alan Minty, owner and chief executive of Enegi, said: "This is an example of how we can use the buoy solution to gain reserves and production in well-appraised, and therefore geologically low risk, assets for a fraction of the price of traditional acquisition routes,"
Mr Minty added: "The Fyne field is an ideal opportunity to show the potential of the buoy solution and is an example of how significant value can be unlocked in an asset which would otherwise have remained undeveloped."
He said the company hoped the deal would generate significant interest in the use of buoy technology as a development solution ushering in a "new era" for the North Sea.
Enegi believes around 116 North Sea fields, which are considered marginal, could be suitably developed using the buoy solution. It was awarded two North Sea licences in the latest UK round.
On completion of a revised Field Development Plan for Fyne, Enegi and ABT will earn the right to acquire a 50% working interest in Fyne in return for paying 50% of the costs of development.
Enegi and ABT will be responsible for all the costs associated with preparing a new FDP based on using buoy technology for Fyne incorporating work already included in previous FDPs.
Antrim, which has 100% of the licence, will remain operator if the deal with Enegi and ABT completes.
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