Project Profile
Value: US$986 million
Location: UKCS Block 42/13 of the southern North Sea in 62 metres water depth, approx. 100 kms to the east of Teesside, UK
Reserves: Approx 797 billion ft³
Production: 103 MMscf/d (full year production average forecast )
Start-up Year: 2Q 2012
Touted as one of the largest undeveloped natural gas discoveries in the UK sector of the North Sea, the Breagh field is located on Blocks 42/8, 42/9, 42/12, 42/13 and 42/14 in a water depth of 194 feet (59 metres). RWE Dea serves as the operator and holds 70%; Sterling Resources holds the remaining 30% interest. The discovery well, 42/13-2, drilled on July 12, 1997, encountered gas. The well tested at a rate of 3 MMcf/d, demonstrating the potential for movable hydrocarbons. An earlier well, 42/13-1, drilled by BP in 1968, located to the east of the 42/13-2 well, encountered 43 feet (13 metres) of wet Scremerston Sandstone, but was not deemed commercially viable.
The data from this well was used as a guideline when the operator explored the area and drilled a third well, appraisal well 42/13-3. This well was drilled using an oil based mud system to avoid the formation damage experienced in the discovery well. The well, 42/13-3, flowed successfully at a rate of 17.6 MMcf/d, giving the operator encouragement to continue to appraise the area. In August 2008, the ENSCO 70 jackup was contracted to drill two additional appraisal wells on the Breagh field. The jackup stayed on location until January 2009. In 2010, an appraisal well, 42/13a-6 on the Breagh field, found gas and was completed as a producer. The well was drilled to a measured depth of 8,624 feet (2,629 metres) and open-hole logs indicated 62 feet (19 metres) of net gas bearing sands. In 2014, Breagh production has averaged 126 million cubic feet of gas per day (“MMscf/d”) sales gas (38 MMscf/d net to Sterling) with production uptime of 95 percent during this period.
The forecast for the second half of 2015 is 99 MMscf/d sales gas for the full field (29.7 MMscf/d net to Sterling). The full year production average forecast remains at 103 MMscf/d of sales gas for the full field (30.9 MMscf/d net to Sterling), in line with previous guidance. Alongside normal production operations, planning for the installation of onshore compression and for a further campaign of development drilling has continued. Front-end engineering and design for the onshore compression project, based on a gas-turbine driver, is scheduled to commence mid-July 2015 with final approval expected in October 2015. Compression is expected to be operational from mid- 2017. Processing of the Breagh 3D seismic data is continuing with delivery of final processed data expected in September 2015. The currently available information is being combined with production history and results of the successful hydraulic fracture operations on wells A07 and A08 to support the infill drilling campaign. It is planned that all wells in the campaign will be fracked (hydraulically stimulated).
Operators:
INEOS: Operator with 70% interest (acquired from RWE Dea in 2015)
Oranje-Nassau Energie BV (ONE): 30% interest
Contractors:
Expro: Well testing services
Allseas: EPC for pipe lay
Ensco: Drilling rig
GE Energy Financial Services: Loan facility for Sterling
Genesis Oil & Gas Consultants Limited: FEED contract
Heerema: EPC for minimum facilities platform for the Breagh A
Honeywell: Design and install the Integrated Control and Safety Systems
Offshore Design Engineering (ODE): Support operations for RWE Dea
PX Ltd.: EPC contract for construction and installation of onshore section of pipeline
Teesside Gas Processing Plant Ltd.: Remote operational services to the platform facility and undertake O&M services for the onshore section of pipeline
RPS Energy: Independent reserves evaluator