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UK: ConocoPhillips announces Central North Sea development approvals

22 Mar 2004

ConocoPhillips has received DTI approval for the development of the UK sector Callanish and Brodgar fields, jointly known as BritSats. Callanish, located in blocks 15/29b and 21/4a, was discovered in 1999. Brodgar, in block 21/3, was discovered in 1985. Both fields will be developed simultaneously as satellites of the already producing Britannia Field. Callanish has estimated reserves of 55m barrels of oil equivalent, while Brodgar has an estimated 75m boe. The development plan involves drilling six horizontal wells (four on Callanish and two on Brodgar) and producing the fields via sub-sea manifolds and two new pipelines to Britannia. A new platform, bridge linked to Britannia, will also be installed to separate production prior to processing on the host platform. Drilling is scheduled to begin in the second half of this year, with the pipelines, manifolds and installation of the bridge-linked platform anticipated for 2006. First production is targeted for early 2007, crude oil being transported via Forties to Kinneil and natural gas via the SAGE pipeline to St Fergus. Britannia, which came on stream in 1998, is one of the largest and most prolific gas and condensate fields on the UKCS, currently producing around 700 mmcfd of gas and 23,000 b/d of condensate. It is anticipated that its productive life will continue beyond 2030. Development of Callanish and Brodgar will extend considerably the plateau life of the Britannia facilities. “Developing satellite fields like these effectively and economically, using existing infrastructure and our experience and technical expertise, demonstrates very clearly that companies such as ConocoPhillips and ChevronTexaco operating on the UKCS still have opportunities to maximise production of reserves which might otherwise not be fully exploited. If we had chosen to develop Brodgar and Callanish independently we would not have achieved comparable returns on our investment,” says ConocoPhillips (UK) managing director Archie Kennedy. Partner interests in Callanish and Brodgar respectively are ConocoPhillips (operator) 83.5%, 75% and ChevronTexaco 16.5%, 25%. Britannia holdings are ConocoPhillips 58.65%, ChevronTexaco 32.38% and BP 8.97%.

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