The starting of production from the UK’s Stella field has been delayed by necessary modifications and delivery of the floating production vessel by Petrofac, according to a report by GlobalData.

Entitled United Kingdom Stella Project Panorama – Oil and Gas Upstream Analysis Report, the report reveals that Petrofac was promised financial incentives if the vessel, FPF-1, was delivered on time and would have been awarded $34m if the was by the end of March.

The project has suffered due to delays leading to costly overruns and Petrofac stands to forfeit any claim to the incentives if delivery happens after July.

The field development was planned via FPF-1 to ensure greater economic return and also to establish a future production hub. The development of Stella as a single field is perceived to be uneconomical making future tie-backs necessary to achieve positive returns from the project.

Stella will be developed as part of the Greater Stella Area development with Harrier field expected to be a future tie-in. The area also represents potential developments in the near future, including Hurricane, Helios and Twister prospects, increasing profitability of the Greater Stella Area.

The GlobalData report states that the lifetime of Stella is estimated to be up to 2024 based on known recoverable reserves and project cash-flow. The project’s remaining net present value (NPV) is estimated to be $408m, whereas its development NPV is valued at negative $871m because of the delays and low oil prices.