Project Profile
Location: block 18/10, Norwegian North Sea, Norway
Area: 115 square kilometres (sq km)
PL406 production license is located in block 18/10, Norwegian North Sea, in Norway and covers an area of 115 square kilometres (sq km). In July 2013, Premier agreed to farm down its stake in PL406, which contains the Mackerel discovery and the Herring prospect, from 80% to 50%, in order to achieve an equalization of interests across the partners within the adjacent PL406 and PL407 licences. The Mackerel discovery will be incorporated into the Bream (PL407) concept select decision while the Herring prospect is being matured for drilling. Premier Oil Limited (Premier Oil) and its partners, the State-owned Kuwait Foreign Petroleum Exploration Company KSC (KUFPEC) and the FTSE-listed Tullow Oil (Tullow), are on the point to select the conceptual design to be used for the development of the Mackerel oil and gas field offshore Norway. According to the new agreement the working interests in both fields Bream and Mackerel have been aligned between parties such as: Premier Oil 50% and is the operator, KUFPEC 30% and Tullow 20%.
After this shake-up in the working interest, Premier Oil and its partners could start the conceptual design to develop jointly Bream and Mackerel considering their 2C reserves approximately to 50 million barrels of oil equivalent (boe). Before this unitization process between Bream and Mackerel, BG Group had awarded the pre front end engineering and design (pre-FEED) to Sevan Marine and its owner Teekay Corporation (Teekay). From this pre-FEED work, Sevan and Teekay recommended to use a floating production storage and offloading (FPSO) to turn Mackerel oil and gas field in production. After years of abandon, the decision to convert the pre-FEED into front end engineering and design (FEED) with Sevan would speed up the development of the Mackerel oil and gas fields. In that respect Premier Oil, KUFPEC and Tullow are expect to make a decision on the first quarter 2014 for the FEED contract in order to see the Bream and Mackerel FPSO in production by 2017.
Operators:
Premier Oil: Operator with 50% interest
Kuwait Foreign Petroleum Exploration Company KSC (KUFPEC): 30% interest
Tullow Oil Plc: 20% interest
Contractors:
Sevan Marine and Teekay Corporation (Teekay): Pre front end engineering and design (pre-FEED)