Stella update, Pt 2 GREATER STELLA AREA DEVELOPMENT UPDATE
Third Stella development well completed, with strong flow test results further de-risking forecast field production performance
DRILLING PROGRAMME
The third Stella development well, "B1", was completed in June 2014. The well was drilled to a total measured depth subsea of 16,185 feet, with a 2,147 foot gross horizontal reservoir section completed in the Palaeocene Andrew sandstone reservoir. The well intersected high quality sands across a net reservoir interval of 2,034 feet, equating to 95% net pay. As with the previous two Stella development wells, a clean-up flow test was performed on the B1 well. The well flowed at a maximum rate of 12,492 boepd (7,565 bopd and 29.6 MMscf/d of gas) on a 48/64-inch choke, with the full production potential of the well limited by the capacity of the well test equipment on the drilling rig. This compares to the results of the Stella "A1" and "A2" wells that achieved maximum flow rates of 10,835 boepd and 10,442 boepd, respectively.
The test results achieved on the first three Stella development wells have served to de-risk the initial annualised production forecast for the GSA hub of approximately 30,000 boepd (100%), 16,000 boepd net to Ithaca.
Drilling operations commenced on the fourth Stella development well in early July 2014. The well, which is targeting the gas cap on the crest of the structure, is being drilled from the same location as the third well and is scheduled to be completed in October 2014.
The first four wells on the Stella field are in the Andrew reservoir. A fifth well on the field is included in the Field Development Plan, targeting the Stella Ekofisk chalk reservoir that lies beneath the principal Andrew reservoir. This well will now be drilled in continuation with the current programme to capitalise on the strong operational experience of the ENSCO 100 rig and associated cost efficiencies, as well as enabling the addition of further oil production capacity at the start-up of the hub to take advantage of spare oil processing capacity on the FPF-1.
The fifth well will be drilled from the Stella Main Drill Centre. Prior to commencing drilling of the Ekofisk well, ENSCO will take advantage of the required rig move from the Northern Drill Centre to demobilise the rig to harbour for approximately one month to complete a routine 5-year rig inspection programme that it is required to perform.
Management of the drilling and completion operations is being performed by Applied Drilling Technology International ("ADTI") under "turnkey" contract arrangements.
2014 subsea installation works progressing well
SUBSEA INFRASTRUCTURE WORKS
Over two thirds of the overall subsea infrastructure installation activities have now been completed. The key outstanding workscopes involve the tie-in of the wells, installation of the vessel mooring spread, the mid-water arch over which the risers and umbilicals are laid, the Single Anchor Loading ("SAL") oil export facilities and the dynamic flexible risers and umbilicals that will connect the riser bases to the FPF-1.
Offshore operations re-commenced in April 2014, with the tie in of the first two Stella development wells at the Main Drill Centre. Installation of the FPF-1 mooring piles to which the vessel will be anchored, along with the pile for the oil export SAL, has recently been completed. Installation of the anchor chains that will be connected to the piles and left ready for pull-in upon arrival of the FPF-1 on location will commence shortly.
It is now planned for installation of the mid-water arch and the oil export pipeline and associated SAL system to be completed next year in order to accommodate Technip's vessel availabilities and take advantage of operational synergies in preparing for arrival of the FPF-1 on location. Execution of the main subsea infrastructure manufacturing and installation programme is being completed by Technip under an integrated Engineering, Procurement, Installation and Construction contract.
Focus on FPF-1 processing plant construction activities
FPF-1 MODIFICATION WORKS
Completion of the FPF-1 modifications programme is the key development activity dictating the overall schedule for first hydrocarbons from the GSA hub. As highlighted in May 2014, whilst progress was being made on the topsides processing plant construction programme, it was advancing more slowly than planned. As a consequence, it was announced that the vessel would be ready for sail-away from the Remontowa yard in Poland to the Stella field in spring 2015. This schedule is anticipated to result in first hydrocarbons from the GSA hub in mid-2015. Since the schedule update, Petrofac has made good progress implementing changes to expedite completion of the remaining modification works, including managerial changes in the yard team and the deployment of increased manpower on the construction workscopes.
The key focus of the on-going modification works is centred on construction activities on the main deck of the FPF-1, along with fit out of the accommodation module, following which commissioning operations will be completed. The main oil and gas processing plant packages (power generation, gas export compressors, etc.) have been positioned on the vessel and installation of the associated pipework has commenced. Fit out of the accommodation module is progressing well, with handover for pre-commissioning expected shortly.
During the quarter, the FPF-1 Operational Safety Case was approved by the UK Health and Safety Executive. This is a key regulatory approval required to enable the start-up of FPF-1 once on location.
Execution of the FPF-1 modifications work programme is being performed by Petrofac under the terms of a lump sum incentivised contract with the GSA co-venturers.
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