West of Shetland oil and gas field owners have agreed to explore electrification options.
A UK Government minister has described yesterday’s move as “an important step” towards reducing emissions.
BP, Equinor and Ithaca Energy have now signed a memorandum of understanding to explore electrification options west of Shetland.
It follows formation of the West of Shetland Electrification (WoSE) group, acting on behalf of the joint-venture partners of the Clair, Rosebank and Cambo fields.
Electrification solutions could include power from shore - potentially from onshore wind - or from offshore wind.
Graham Stuart, Minister of State for Energy and Climate Change, witnessed the signing of the memorandum on Tuesday.
Protecting jobs
Mr Stuart said: “I am delighted to host the signing of today’s agreement between BP, Equinor and Ithaca to explore the possibilities of electrifying oil and gas production in the UK. This signing is an important step for industry towards reducing their emissions, while protecting jobs and delivering on the commitments in the landmark North Sea Transition Deal.”
To become some of the first oil and gas developments on the UK Continental Shelf to be powered by electricity, the project is seeking to overcome technical challenges presented by the remote and deep-water locations of the fields, as well as commercial, regulatory, and consenting hurdles.
The WoSE group’s objective to evaluate options for a hub electrification concept is aligned with the North Sea Transition Authority’s and UK Government’s aim of supporting domestic oil and gas production with the lowest carbon footprint possible.
It also supports the North Sea sector’s ambitions to become a net-zero basin and the North Sea Transition Deal agreed between the UK Government and the offshore oil and gas industry in March 2021.
A spokesperson for the WoSE group said: “This initiative seeks to evaluate the technical, commercial, and regulatory challenges of various low-carbon power hub solutions to recommend a technically and commercially-viable option that can meet the requirements of the three field owners within the respective project timeframes.
“Continued production from the west of Shetland supports the UK Government’s drive for home-grown oil and gas with a lower carbon footprint while protecting the jobs, skills and supply chain needed to drive the energy transition. Each of the companies in the WoSE group is proud to be playing its part.”
Giant field
Clair Ridge is the second phase of the giant Clair field.
Clair Ridge started up in November 2018, targeting 640million barrels of recoverable resources and peak production of 120,000 barrels of oil a day.
The multi-billion-pound investment by BP and partners is designed to continue producing until 2050.
Clair was discovered in 1977, but challenging reservoir characteristics and the technological limits of the time meant it was 2001 before BP and partners approved a development plan for a first phase of development.
Phase one was brought on stream in 2005, targeting approximately 300million barrels of recoverable reserves.
It was the first fixed offshore facility to be installed west of Shetland.
Direct investment
Rosebank is an oil and gas field. Equinor acquired the operatorship in 2019 and has since then been working to optimise and mature a development solution for the field together with its partners. It has been estimated that Rosebank would create £8.1billion of direct investment.
The Cambo field was discovered in 2002, and Ithaca holds a 70% operated interest.The plan is for the find to be developed using a purpose-built Sevan floating production vessel.
It was reported last week that Ithaca is preparing to pull the trigger on hundreds-of-millions of pounds worth of spend should several North Sea projects get the go ahead. If Cambo, Rosebank, Fotla and Marigold are all given the green light, the company is projecting near-term capex levels of between £754million and £1.1billion.