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BP in Kinnoull Subsea Win

06 September 2011

BP has won UK government approval for its Kinnoull subsea development in the North Sea.

BP’s North Sea upstream boss, Trevor Garlick, met with UK Energy Minister Charles Hendry at the SPE Offshore Europe 2011 event in Aberdeen on Tuesday morning.

BP confirmed the approval in a separate statement on Tuesday putting the value of its investment at £700 million ($1.13 billion).

Hendry said: "Since we started exploring and producing in UK waters, we have been at the leading edge of a worldwide industry. And we still are. This year is shaping up to be our best year for new developments in at least a decade."

Hendry said Kinnoull and the level of interest at the SPE Offshore 2011 conference was clear evidence that the UK oil and gas sector continues to thrive.

The UK supermajor is developing Kinnoull as a 28-kilometre subsea tie-back as part of the Andrew Area Development .

The project is 230 kilometres north-east of Aberdeen in blocks 16/27a and 16/28 of the central North Sea. BP said production from Kinnoull is forecasted to peak at 45,000 barrels per day. Production is set to begin in 2013.

Garlick commented: "The Kinnoull project is a further demonstration of BP’s vision to sustain a material and high quality business in the North Sea region. It is also a showcase for the outstanding subsea expertise that exists within the UK. At its peak the project will create employment for over 1,000 people in the UK.”

BP continued in its statement: "In order to access the new reservoir, the project will install a new subsea system and caisson onto the Andrew platform. The backbone of the subsea system will be four subsea bundles with a total length of 28 kilometres - the longest bundle system in the world - which will carry the fluids to the Andrew platform for processing.

"The bundle system is being fabricated by Subsea 7 at its facility in Wick, Scotland."

Meanwhile, the Department of Energy & Climate Change has also granted approval for Chevron's Aberlour well – the company’s third deep-water exporation well off the west and north of Shetland, which will use the hi-tech drilling ship the Stena Carron.

Stena Carron is currently drilling the Cambo-4 well. Cambo is operated by Hess although the drilling operations are being handled on behalf of Hess by Chevron.