JOG and NEO Energy have selected redeployment of a floating, production, storage and offloading (FPSO) vessel as the preferred solution for GBA development, have signed agreements for the potential acquisition of an existing FPSO
UK-based independent upstream oil and gas company Jersey Oil and Gas (JOG) has finalised the development solution for the Greater Buchan (GBA) project in the UK North Sea.
JOG finalises development solution for GBA. (Credit: wasi1370 from Pixabay)
JOG, together with its partner NEO Energy, recently secured a key extension for the second term of the P2170 Verbier licence, which holds the GBA development.
The license extension was granted by the North Sea Transition Authority (NSTA).
JOG and NEO have selected the redeployment of a floating, production, storage and offloading (FPSO) vessel as the preferred solution for GBA development.
As per the specifications of the development solution, the GBA and its partner have signed key commercial agreements for the potential acquisition of an existing FPSO.
The total capital expenditure for the Buchan field re-development, including the acquisition of the FPSO, is estimated to cost around $900m.
The estimate will be refined as part of the front-end engineering and design (FEED) and contract tendering activities prior to the finalisation of the Field Development Plan (FDP).
Its development solution is a low-cost development option and results in the low-carbon footprint of all the potential options evaluated, said the British oil and gas company.
Jersey Oil and Gas CEO Andrew Benitz said: “We are delighted to have finalised the GBA development solution and agreed on key commercial terms for securing an FPSO for redeployment on the Buchan field.
“This marks a major step forward for the project, not least by providing the GBA partners with a solution that minimises the overall carbon footprint of the project and provides the opportunity to be an early participant in the UK oil and gas industry's offshore electrification plans.
“We look forward to working closely with NEO, as the incoming operator of the GBA licences, on preparing the overall Buchan field re-development plan that is anticipated to be submitted to the NSTA during the first half of 2024.”
JOG said that its preferred development solution is in line with the NSTA’s obligations to maximise the economic recovery of reserves and help achieve the UK’s net zero target.
NSTA has reviewed the development solution and confirmed that it has no objections to the Concept Select Report submitted to support the Buchan re-development programme.
JOG is planning to re-use existing infrastructure at the Buchan field and make the FPSO ‘electrification-ready’ with limited modifications upon its redeployment.
