Repsol Sinopec confirms first oil from Montrose Area Redevelopment

First oil has begun to flow from the Shaw field, part of the major redevelopment of the Montrose Area in the Central North Sea operated by Repsol Sinopec Resources UK.

“This is a major achievement for this business and will help to consolidate the transformation that Repsol Sinopec Resources has undergone in the last two years,” said Bill Dunnett, Managing Director, Repsol Sinopec Resources UK. “The Montrose Area is a key part of our long-term future and we look forward to it safely delivering value for us, our shareholders and our partner Marubeni for many years to come.”

The Montrose Area Redevelopment (MAR) is a major capital project that significantly enhances the long-term Montrose Area infrastructure. The project incorporates the development of three new fields – Godwin, Cayley and Shaw – and a new bridge-linked production platform (BLP) connected to the Montrose Alpha to provide additional process and plant support facilities.

The Godwin field has been developed via an extended reach well from the Arbroath platform. The Cayley and Shaw fields have been developed as subsea tie-backs to the BLP. According to Repsol Sinopec, Shaw production will be followed by Cayley by the end of Q2 2017, with gross incremental production expected to peak at up to 40,000 barrels of oil equivalent a day. The project overall is expected to unlock up to 100 million boe of additional reserves.

In addition to developing the new fields, the MAR project is expected to extend the life of the existing Montrose Area fields to beyond 2030. Montrose Alpha was originally commissioned in 1976.

Andy Samuel, Oil and Gas Authority Chief Executive said: “First oil from Repsol Sinopec Resources and Marubeni’s Montrose Area Redevelopment project epitomises the additional value that can be achieved by integrating new and existing infrastructure to unlock significant resources from fields across the UK Continental Shelf.

“The investment in the new bridge linked platform will substantially increase the life of the Montrose Area fields with the construction stage supporting many jobs in the supply chain, including the construction of the jacket on Tyneside. Successful delivery of major capital projects brings significant benefits to the UK and has a vital part to play in maximising economic recovery.”

Repsol Sinopec Resources UK Limited is the operator with a working interest of 58.97%, and Marubeni Oil & Gas (UK) Limited is the sole partner.

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