BP Chief Executive Confirms Delay to Seagull Project, Expected Online Later This Year
Posted 01/08/2023 12:23
BP's North Sea Seagull project is facing a slight delay, as confirmed by the company's Chief Executive, Bernard Looney. During a call with analysts on Tuesday, following the release of BP's latest results, Looney revealed that the Seagull project is now expected to come online "later" in 2023, despite previous guidance indicating production would commence in the first half of the year. In May, operator Neptune Energy had mentioned that the project was nearing completion, with first oil scheduled for July.
The Seagull project, a tieback to BP's ETAP production hub, began drilling operations last year and is located approximately 10 miles south of the platform. The project is estimated to hold proved plus probable net gross reserves of 50 million barrels of oil equivalent (boe). Neptune Energy operates Seagull with a 35% stake, while BP and Japex hold 50% and 15%, respectively.
Gas from the Seagull field will be exported through the CATS pipeline system to the CATS Processing Terminal in Teesside, while the Seagull oil will be sent ashore via the GAEL and FPS pipeline systems to the Kinneil Terminal in Grangemouth.
Apart from the Seagull project, BP's Tangguh LNG expansion initiative is also expected to come online in the second half of 2023, with final works currently underway. This initiative will increase the total capacity at the Indonesia facility to 11.4 million tonnes of gas per year when its third phase starts up.
Bernard Looney reiterated BP's commitment to the UK and its energy strategy during the call with analysts. He emphasized the company's "and not or" strategy, which involves investing in the North Sea and transitioning to renewable energy sources. BP is involved in oil and gas operations, undertaking a five-well drilling campaign West of Shetland, and bringing the Seagull project online later this year. The company also has offshore wind projects in the Irish Sea and Scotland and plans to invest £18 billion in the UK region over the decade, showcasing its diverse energy strategy and commitment to the country as an investment destination.