Business

Total starts new production in the North Sea

French energy company Total said Wednesday it started new production at gas and ultra-light oil fields that will contribute to its growth in the North Sea.

The company said it started production from the Edradour and Glenlivet fields in the waters west of the Shetland Islands. Production capacity is around 56,000 barrels of oil equivalent per day.

Arnaud Breuillac, the president of exploration and development for Total, said the market was favorable for new developments and the start-up of production came 30 percent under the original budget.

“This development will contribute to our production growth in the North Sea,” he said in a statement.

The British government confirmed Total’s field development plans in 2015. It came as a British budget plan was drawn up to boost exploration for new oil and gas reserves in British territorial waters. Ian Wood, who at the time led the drive to add vitality to the sector, said the package would help stimulate investor confidence in a North Sea oil and gas industry coping with the decline of older fields.

The region has seen renewed interest so far this year. North Atlantic Drill Ltd. was awarded a contract with Siccar Point Energy, an exploration and production company, to examine the waters west of Sheltand in June. Siccar Point said more than 100 million barrels of recoverable reserves have already been discovered there.

Though regional reservoirs are reaching the age of maturity, British energy company BP said it aims to double its North Sea production to 200,000 barrels of oil equivalent per day by 2020.

Working under the Quad 204 regional redevelopment effort, BP started new oil production from the Schiehallion area west of the Shetland area of the North Sea in May.

Source:-UPI

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