• A revised Concept Select Report Addendum for Hartshead’s Phase I gas development has been submitted to the NSTA.
• New gas export route ties into the CalEnergy Resources owned and operated Saturn Banks pipeline system, for transportation to the Perenco owned and operated Bacton Terminal, where gas will be processed before entry into the UK grid
• Infrastructure funding discussions are well advanced for pipeline extension to the tie-in to the Anning & Somerville development area
• Platform re-use and funding discussions progressing for Somerville development
• Project economics are significantly enhanced through reduced anticipated CAPEX and potential for accelerated production volumes and timeline
• New gas export route included in Concept Select Report Addendum is a far superior offtake route
• Gas development concept of two, normally unmanned production platforms (one on each field), six production wells (three on each field) remains unchanged
Hartshead Resources has submitted a Concept Select Report Addendum (CSRA) to the North Sea Transition Authority (NSTA) in respect of the Anning and Somerville gas fields development.
The original Concept Select Report (CSR) was submitted in May 2022 and a letter of no objection to proceed with the selected development concept received from the NSTA in July 2022. The original CSR selected a development concept for the two fields that consisted of two, normally unmanned production platforms (one on each field), six production wells (three on each field) and an export gas pipeline, tying into third party infrastructure for the onward transportation of gas to the Bacton Gas Terminal and into the UK NTS.
The CSRA has an identical development concept as originally submitted in the CSR. An addendum to the CSR is required as Hartshead has evaluated and selected a far superior offtake route for the gas production from the two fields. The selected export route now ties into the CalEnergy Resources owned and operated Saturn Banks pipeline system, for transportation to the Perenco owned and operated Bacton Terminal, where gas will be processed before entry into the UK grid. Discussions regarding commercial and technical specifics for transportation and processing of gas are progressing well.
The route has significant advantages over the previously selected route, including:
• Increased production volumes capacity (satisfying the NSTA Maximising Economic Recovery requirement)
• Accelerated production
• Earliest projected first gas date
• Simpler tie-in to host infrastructure
• Superior economic performance
Hartshead is exploring and is in advanced discussions, regarding capital investment for pipeline infrastructure associated with the development, consisting of the potential for one hundred percent funding for the extension of the existing Saturn Banks pipeline to the Anning & Somerville field development area. Potential for re-use of other existing infrastructure, such as the re-purposing of an existing production platform, is also being investigated and progressed. This platform re-use is also the subject of infrastructure funding discussions.
The CSRA has been submitted by Hartshead under the sole risk provisions of the P2607 Joint Operating Agreement (JOA). The P2607 Joint Venture (JV) did not vote in favour of submission of the CSRA to the NSTA and hence Hartshead has elected to submit this on its own behalf, and not as Operator on behalf of the JV. The P2607 JV partners who did not vote in favour of submission of the CSRA still have the opportunity to join the development.
Source: Hartshead Resources
