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Talisman claims it extract a further 100m boe from the fields
24/10/2012
UK approves £1.6bn Talisman redevelopment
Will extract 100m boe from mature fields
Richard Jansen
THE UK has given the green light to a £1.6bn (US$2.6bn) project from Talisman Energy, aiming to extend the life of aging North Sea oil fields.
The Canadian energy company claims that it’s ‘MonArb Area Redevelopment Project’ will allow them to extract a further 100m boe from six mature fields throughout the North Sea. It plans to drill new wells and use “maximised recovery” techniques to keep the fields producing for as long as possible.
UK energy minister John Hayes says that the investment “marks the start of a new wave of interest in North Sea oil,” and credited Talisman’s decision to invest in the area as to the government’s Brown Field Allowance, which offers tax breaks to companies redeveloping mature oilfields.
“Together with industry, we are creating a fertile ground for new investment,” he continues. “The North Sea has been a bedrock of the UK economy, creating jobs, investment and energy security for nearly 50 years, and we must do all we can to prolong the economic life of our oil-rich seas and make the most of this precious resource.”
The fields included in the project are Montrose, Arbroath, Brechin, Arkwright, Carnoustie and Wood. Talisman also has approval to develop the new Cayley and Shaw fields.
The UK’s Department of Energy and Climate Change claims the MonArb project will support more than 2,000 jobs throughout the UK, both on- and offshore. Its first major contract – worth £50m – has already been awarded to Offshore Group Newcastle, for the engineering, procurement and fabrication of the drilling rig’s base.
