Atlantic Petroleum, the international upstream oil and gas company, announces that first oil cargo has been successfully offloaded from the FPSO Sevan Hummingbird on the Chestnut Field. Atlantic Petroleum holds 15% working interest in UK Block 22/2a which contains the Chestnut Field.
The shuttle tanker "Siri Knutsen" successfully completed offloading of the first oil cargo from the floating production storage and offtake unit (‘FPSO') Sevan Hummingbird. The tanker will discharge its cargo of approximately 220,000 barrels at a refinery in NW Europe within the next few days.
Commenting on the announcement, Wilhelm Petersen, Managing Director of P/F Atlantic Petroleum said:
“This offloading of our first cargo is another historic milestone for Atlantic Petroleum, adding to the recent first oil milestone. The expected income to Atlantic Petroleum from this first cargo is expected to be around DKK 15-16 millions for approx 20 day's production from the Chestnut field. This milestone is in line with our strategy of being an exploration and production company and as such opens up additional opportunities for Atlantic Petroleum, which will be pursued in accordance with the current company strategy.”
Production on the Chestnut Field commenced on 20th September utilising the Hummingbird FPSO which is the second Sevan 300 unit to be built and the first cylindrical FPSO to be deployed in the North Sea. It will stay on location until the Chestnut Field ceases production. The partnership has leased the FPSO for two and a half years and has options to extend the lease period up to an additional two years.
Chestnut has recoverable reserves estimated at 1.4 million barrels of oil equivalent (“MMboe”) to Atlantic Petroleum and initial average production rates to Atlantic Petroleum are expected to be between 1,300 and 2,100 barrels of oil equivalent per day (“boepd”). The reserves and the production rates mentioned excludes production from South Chestnut.
As previously announced, a second Chestnut production well was spudded on 7th September 2008. Drilling operations are ongoing and the well is expected to be completed shortly and tied-in to the Chestnut infrastructure during early 2009. The well is expected to significantly increase production rates, recoverable reserves and extend the field life. The well is being drilled by the Noble Ton Van Langeveld semisubmersible rig.
Partners in this licence are Venture Production (operator) 69.88%, Bow Valley 15.12% and Atlantic Petroleum 15%.
View our North Sea Focus link and stay in touch with the latest news and companies active in this region
