Following more than a year of front end engineering and development work, Sevan Marine is pleased to announce that it has been chosen by Dana Petroleum for the Western Isles development project.
The Western Isles project consists of two oil fields called Harris and Barra in the UK Northern North Sea and east of Shetland.
Carl Lieungh, Sevan Marine's CEO said: "We are extremely pleased that our FPSO technology has been chosen by Dana for the Western Isles development project. We have already enjoyed working with Dana during front end engineering and development, and we are looking forward to continuing to provide services to Dana during the execution of the EPC contract."
The development is expected to produce more than 40,000 barrels of oil equivalent each day and the project is expected to receive full approval from the UK Government towards the end of 2012, with first oil production expected in 2015.
Sevan Marine and Dana Petroleum have negotiated two agreements, one Technology License Agreement whereby Dana pays a license fee to Sevan for the right to use the proprietary Sevan Technology, and one Service Agreement under which Sevan will provide technical and administrative resources to Dana during the project.
The FPSO is reportedly to be built at COSCO Shipyard Group in China.
Sevan Marine ASA is specializing in design, engineering and project execution of floating units for offshore applications, with a main focus on Floating Production, Storage and Offloading units (FPSOs).
The Western Isles Project (Dana 65% and Cieco 35%) will develop two discovered oil fields called Harris and Barra in the Northern North Sea, 160km east of the Shetlands and 12km west of Tern field. It involves a subsea development of at least five production and four water injection wells tied back to a newbuild floating production, storage and offloading vessel (FPSO) with oil export using shuttle tankers.
UK Government sanction is expected towards the end of 2012 followed by placement of the major contracts. Drilling is expected to begin 2013 with subsea installation in summer 2014 and FPSO installation summer 2015.
Paul Griffin, Dana’s UK Managing Director said: “Western Isles is a very important project for Dana and a key part of our strategy to double daily production to more than 100,000 barrels of oil equivalent by 2016. Work on the detailed engineering design will begin immediately and the project is expected to receive full approval from the UK Government towards the end of 2012, with first oil production expected in 2015.”
Charles Hendry, UK Minister of State for Energy and Climate Change said: “This is great news for UK energy security and UK jobs and joins a growing list of major North Sea projects announced recently. Dana’s procurement strategy will create opportunities for UK companies to compete for key parts of the project. I’m delighted that Dana has demonstrated its commitment to the UK North Sea and we look forward to receiving the final development proposals.”