HURRICANE Energy has said it is on track to start production from the giant Lancaster field West of Shetland next year with work on the production facilities progressing well.
Five months after Hurricane provided a boost for the hard-pressed North Sea oil and gas industry by approving plans for the $500m (£360m) Lancaster development, the company said it had passed a key project milestone.
Surrey-based Hurricane said tests of the mooring system that will be used by the floating production storage and offloading vessel on the field had been completed successfully a week ahead of schedule in Dubai.
The FPSO is expected to leave Dubai on schedule in the third quarter following the completion of renovation and upgrade work.
Chief executive Robert Trice said he was delighted with the results of the trial, which involved testing the connection between the FPSO and a buoy that will form part of the mooring system.
“With other operations continuing as planned, we remain on schedule for target first oil in H1 2019,” said Mr Trice.
Hurricane’s progress will be followed closely in the North Sea. Its exploration success West of Shetland has fuelled hopes there could be a surge of drilling activity in what remains a relatively under-explored area.
Hurricane expects to pump 19,000 barrels per day from an early production system on Lancaster, which it thinks could pave the way to a much bigger development.
It reckons the Lancaster licence may contain more than 500 million barrels oil.
Separately, Aberdeen-based oil and gas well engineering specialist Plexus Holdings said it has made progress in the key Russian target.
The company has struck a £1.4m deal to sell two wellheads to a Russian partner, LLC Gusar, which has a licence to rent out its jack-up wellhead equipment for use in exploration in the country.
Following the recent sale of its jack-up wellhead exploration equipment and services business to FMC Technologies for up to £42.5m, Plexus retained the right to pursue business in Russia under the licence.
Chief executive Ben van Bilderbeek said the wider Russian region was a central area of focus for Plexus.
He noted: “The sale of these two wellhead sets is a key step towards Gusar securing a landmark first rental order from a local Russian gas operator.”
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