Delays caused by FPSO regulatory compliance and construction issues have pushed the start of production from the UK's Western Isles Development back to Q3 2017, reveals a GlobalData report.

Entitled United Kingdom Western Isles Development Project Panorama – Oil and Gas Upstream Analysis Report, the report states that the delays in development have caused the project cost to rise from $1.6bn to approximately $2bn. Comprising Harris and Barra fields, the project is expected to yield 40,000bpd of oil at peak, representing a 5% increase in the UK’s total production.

Plagued by delays and increasing capital expenditure, as well as low global oil prices, the economic profitability of the project has been significantly reduced. To be profitable, the development requires either a turnaround in the commodity prices or reduction in costs as it is currently estimated to breakeven at approximately $95 a barrel.

"The economic profitability of the project has been significantly reduced by global factors."

Western Isles development’s net present value will be doubled if a 20% increase occurs in the commodity prices or enhanced/improved oil recovery techniques are applied.

The GlobalData report also mentions that the project’s economic viability can be enhanced by minimising downtime, increasing production efficiency and developing neighbouring assets as tie-backs.

The total number of wells at the field reached five after the Ocean Guardian began drilling at the southern drill centre in March 2016. The northern drill centre is scheduled to be targeted after four months with drilling activities expected to continue up to March 2017.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The project’s FPSO is currently docked at the COSCO yard and is expected to sail away in November. This will be followed by the hooking up of the subsea wells to the FPSO once it arrives in March 2017. The field is estimated to hold 100 million metric barrels (Mmbl) of oil. However, the operator Dana Petroleum reported feasibly recoverable reserves at the field as being 45Mmbl.