North Sea Oil Field in Shock Decommissioning Announcement - Oil Price Blamed
Posted 09/05/2015 08:00
Oil and Gas People sources have today confirmed the surprise news that a North Sea Oil Platform will be shutdown after summer and then decommissioned. Two Senior managers from Fairfield Energy are said to have travelled to the Dunlin platform yesterday in a surprise visit to announce the news to the crew.
The shock announcement was made to the crew after senior management arrived on a flight direct from Aberdeen just after 10am yesterday. The Amec core crew had thought the unannounced visit was regarding a change to their shift pattern but silence fell as the news was delivered in the Galley that due to the low oil price and the fact that the platform is producing under the minimum level, it would not be re-starting after the planned summer shutdown.
Production from all Dunlin cluster fields will shut down in mid-June, Fairfield have confirmed
The cluster includes the Dunlin, Dunlin South West, Merlin and Osprey fields.
They have produced more than 522million barrels over 37 years of operation, which is much longer than the Dunlin Alpha platform’s original 25-year design life.
Fairfield said Dunlin Alpha would remain fully manned and operational “in the meantime”, continuing to export third party oil into the Brent system pipeline.
A phased decommissioning process is expected to take a number of years, with “high offshore activity levels maintained throughout”.
Fairfield chief executive David Peattie said: “The Dunlin asset has now achieved maximum economic recovery. “Taking into account the asset’s lifecycle, the depressed oil price and challenging operational conditions in the North Sea, starting the decommissioning process is the most appropriate action.
“Our investment programme has prolonged the life of Dunlin, leading to a notable contribution to the British economy and the creation of jobs in North Sea oil and gas.
“We are fully committed to delivering a safe and transparent decommissioning process and will work closely with staff and stakeholders to achieve this.”
The Dunlin oilfield is situated 195 km northeast of Lerwick, Shetland in block number 211/23a and 211/24a. It was originally operated by Shell but was in recent years sold and is now operated by Fairfield Energy; Amec are the duty holders. It was discovered in July 1973 at a water depth of 151 metres (495 ft). Estimated recovery is 363 million barrels of oil. The oil reservoir is located at a depth of 9,000 feet (2,740 metres).
Production started in August 1978 from the Dunlin Alpha platform. This platform is a concrete gravity platform of the ANDOC type (Anglo Dutch Offshore Concrete). It has four legs and storage capacity for 838,200 barrels of oil. The total sub-structure weight is 229,000 tonnes and it is designed to carry a topsides weight of 15,886 tonnes.
The topsides facilities included capability to drill, produce meter and pump oil. It also has capability to re-inject water to maintain reservoir pressure. Peak production was 115,000 barrels per day in 1979; today it is approximately in the region of 3500 - 4000 bpd. Oil production is by pipeline to Cormorant Alpha and then by Brent System Pipeline to Sullom Voe in Shetland.
This story will be updated as more information comes available. Our news desk can be contacted via news@oilandgaspeople.com
