Orcadian Energy yesterday hailed a one-year extension to its licence for the Pilot field, to November 2023, as a “real vote of confidence in the North Sea” from the regulator.
The oil and gas development company told the stock market that the North Sea Transition Authority had granted a one-year extension to licence P2244, which takes in Pilot, a field which Orcadian noted had audited proven and probable reserves of 79 million barrels.
North Sea-focused Orcadian said: “The second term of licence P2244 was due to expire at the end of November this year but will now expire at the end of November 2023. During 2023, Orcadian will be working towards a potential development decision on the Pilot field… This extension to the licence will enable the company to continue to progress this work.”
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It added: “The directors believe that development of the Pilot field is an essential aspect of a 'secure transition' to net zero for the UK and, due to the development concept that the company has adopted, we expect the Pilot field to be amongst the lowest carbon emitting oil production facilities in the world.”
Orcadian said the carbon-equivalent emissions per barrel of oil from Pilot were expected to be “approximately a tenth of the emissions intensity of North Sea production in 2021”.
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Shore Capital, Orcadian’s joint broker, said yesterday: “Along with FPSO (floating production, storage and offloading) vessel selection and engineering, we had previously highlighted successful project financing as a key objective in the months ahead – prior to targeted FDP (field development plan) approval shortly afterwards. Orcadian confirms today that it will be working towards a potential development decision for Pilot in 2023, and we eagerly look forward to further updates in relation to a very significant North Sea project with industry-leading environmental credentials.”
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