The acreage awarded includes the Greater Buchan Area (Gba) in the North Sea and the J2 oil discovery and is contiguous with the company’s existing interest in Licence P2170 comprising Blocks 20/5b and 21/1d.
P2170 contains the 2017 Verbier (J62-J64) oil discovery with a low case operator estimate of 25MMboe of discovered resource, as well as significant identified prospective resources. The co-venturers in the licence are JOG (18%), Equinor UK (70%), and CIECO V&C (UK) (12%).
JOG noted that its acreage interest in the GBA, including P2170, is expected to have more than 100 million barrels of oil equivalent (MMboe).
The company will now start work on a field development plan to deliver a potential JOG-operated major new area hub development in the medium term in line with the OGA’s maximum economic recovery strategy, with first oil targeted for 2024.
The proposed hub will be planned to incorporate the redevelopment of the Buchan oil field, together with the J2 oil discovery.
JOG CEO Andrew Benitz said: “Prior to these awards, JOG’s net share of discovered resources in Verbier were estimated at 4.5MMboe. Today’s awards add an estimated 105 mmboe of discovered resources net to JOG, in addition to a material uplift in new prospective resources.
“These awards are the kind of value creating opportunities available to nimble independent companies operating in the North Sea today and stem from an intensive two-year work effort behind the scenes by JOG to prepare today’s winning applications.”
Discovered by BP in the mid-1970s, the Buchan oil field became operational in 1981 and production continued until May 2017.
Additionally, JOG has signed a three-month option agreement with Equinor, under which the latter has secured an option over a 50% equity interest in respect of Blocks 20/5d and 21/1a (Buchan Blocks).
JOG will serve as licence operator, if the option is exercised, in respect of the Buchan Blocks. Equinor will reimburse JOG for its 50% share of costs in relation to the licence applications.