Talisman lets Auk North, Burghley contracts

23 February 2010

Talisman Energy UK Ltd has let two lump-sum engineering, procurement, and installation contracts to Technip for development of two oil fields in the UK North Sea.

One of the fields is Auk North, which Talisman is developing with three horizontal wells completed subsea with electric submersible pumps and tied back to the Fulmar A Platform about 10.5 km away. Auk North is on Block 30/16.

Technip will fabricate and install the production pipeline and install an umbilical, power cable, and subsea equipment.

Talisman estimates Auk North reserves at 13 million boe proved and 17 million boe proved and probable.

It expects production to start in 2011 and to peak at 10,000 boe/d. The Auk North subsea manifold will be able to accommodate as many as six horizontal producers.

Talisman also plans to redevelop nearby Auk South oil field by drilling nine wells and recompleting three wells, adding reserves of 23 million boe proved, 29 million boe proved and probable. South Auk production is to begin in 2012, peaking at 11 million boe/d.

The other Technip contract is for fabrication and installation of production and gas-lift pipelines and installation of an umbilical and subsea structures at Burghley oil field on Block 16/22.

Talisman is developing Burghley with at least two development wells completed subsea and tied back to the Balmoral floating production vessel operated by Premier Oil on Block 16/21 about 8.5 km away.

It estimates Burghley reserves at 2 million boe proved and 3 million boe proved and probable. Burghley production is to begin late this year. According to government filings, it will peak at as much as 15,000 b/d of oil and 2.9 MMscfd of gas.

Talisman bought Auk field from Shell UK Ltd. and Esso Exploration & Production Ltd. at the same time it bought the companies’ combined 85.81% interest in Fulmar field under an agreement announced in 2006 (OGJ, Nov. 20, 2006, p. 36).