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May 22, 2014

Maersk Oil moves ahead on $4.7bn UK North Sea gas project

Maersk Oil UK has selected KBR London to provide front-end engineering design (FEED) services for the Culzean project in the UK North Sea.

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Maersk Oil UK has selected KBR London to provide front-end engineering design (FEED) services for the Culzean project in the UK North Sea.

The $4.7bn (£3bn) project is one of the largest gas discoveries in recent years in the UK.

It will have a new standalone facility for development by Maersk Oil and its co-venturers JX Nippon and Britoil.

The facility will comprise a complex of bridge-linked platforms, including a 12-slot wellhead platform (WHP), a central processing facility and utilities / living quarters.

The company has also selected a newbuild heavy duty jackup (HDJU) rig provided by Hercules Offshore.

Culzean, an ultra high-pressure / high-temperature (uHP / HT) field discovered in 2008 in 22/25 block of the UK Central North Sea, was appraised during 2009-11.

The well may provide around 5% of the UK’s total gas consumption by 2020/21 if successfully developed, while first gas is expected in 2019.

A phased installation of the facilities is expected to commence in 2016, subject to a final investment decision in 2015.

"A phased installation of the facilities is expected to commence in 2016, subject to a final investment decision in 2015."

Maersk Oil UK managing director Martin Rune Pedersen said: "We’re pleased to make this announcement today, which means the project is progressing as planned.

"Culzean is a key growth project for Maersk Oil, but can also be an important new resource for the UK in terms of its potential to support energy security and employment.

"We also hope and expect that these new facilities will not only support production of the Culzean discovery, but serve as a hub for a new development cluster in the surrounding region.

"In this way, the development can play its part in maximising recovery from the UK continental shelf."

Financial Secretary to the Treasury Nicky Morgan MP said: "It’s great news that significant progress is being made in the development of Culzean, with the first contract being awarded to a UK company."


Image: Culzean is a uHP / HT field discovered in 2008 in Block 22/25 of the UK Central North Sea. Photo: courtesy of Maersk Oil UK.

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