BP plc BP announced on behalf of its Schiehallion co-venturers Royal Dutch Shell plc RDS.A and OMV that the new floating production storage and offload (FPSO) vessel, Glen Lyon, has commenced sea trials. The vessel has set out toward the west of Shetland, where it will function as the hub for the 450 million barrel Quad204 development in the North Sea.
The 270 meters long and 52 meters wide FPSO vessel is a crucial component of the multi-billion pound Quad204 project. The Schiehallion and Loyal fields are being re-developed under Quad204 project and are expected to be productive till 2035 and beyond. The project entails linking and commissioning the new FPSO vessel, drilling many new production and injection wells as well as upgrading the subsea (seabed) pipeline, manifold and wellhead infrastructure that will facilitate full development of the reserves.
Schiehallion and Loyal fields were brought online in 1998 and they have produced about 400 million barrels of oil since. The fields are estimated to hold another 450 million barrels of resource, which the company hopes to extract through the Quad204 development.
Over the past two decades, BP and its co-venturers have established a strong track record west of Shetland with the use of latest innovations to optimize recovery from the fields. The companies intend to continue the innovative approach through the potential use of cutting-edge polymer-based enhanced oil recovery (EOR) technology.
Glen Lyon will have the capability to process and export about 130,000 barrels of oil a day. The vessel is estimated to have a storage capacity of about 800,000 barrels.
Contracts related to this major development project are still being given out by BP. Recently, BP awarded businesses worth about £45 million to U.K.-based companies to deliver services and equipment for the new FPSO, together with hook-up support and follow-on commissioning work for the vessel.
BP holds an interest of 36.3% in Schiehallion venture, while the other partners hold 54.03% and 9.67%, respectively.
Currently, BP carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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