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    UK Etap Hub Completes 20th Year

Summary

The BP-operated complex has proved amenable to change, and as a result is now looking forward to perhaps another two decades' output.

by: William Powell

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Natural Gas & LNG News, Europe, Corporate, Exploration & Production, News By Country, United Kingdom

UK Etap Hub Completes 20th Year

The Eastern Trough Area Project (Etap) in the UK central North Sea has now been in service for 20 years, operator BP said July 18, with total output having exceeded 550mn barrels of oil equivalent gross. 

"Etap, often regarded as one of the most ambitious and commercially complex developments in the North Sea, comprises multiple fields with varying ownership arrangements sharing a central processing facility," BP said.  

At the time of development, the individual reservoirs were not deemed to be commercially viable on a stand-alone basis, so the Etap alliance was formed to develop the fields as one joint development. It came on stream in July 1998 with an estimated production life of 20 years. However, a $1bn investment programme in 2015 breathed new life into the hub, securing its future into the mid to late 2030s.

Andy Samuel, CEO of the offshore regulator Oil & Gas Authority, said that Etap exemplified the principle of 'maximising the economic recovery' (MER) of the UK continental shelf, even before the concept - a key element of the OGA's activity - existed.

“Most impressive has been the great leadership and collaboration from the owners, investing significantly over decades to unlock substantial value in innovative partnership with service companies. The area still has an exciting future, with plenty to play for and the potential for further discoveries to be tied back,” he said.

Etap's central processing facility (CPF) which sits over the Marnock field

etap-north-sea.jpg

(Credit for the photo above, and the banner photo: BP)

Intially seven fields, four operated by BP and three by Shell produced through the CPF. Two further BP-operated fields came online four years later in 2002, bringing the total number of fields producing through the CPF to nine. Two of the Shell fields have since ceased production. Day-to-day production operations of the remaining seven Etap fields are controlled by BP from the CPF.

BP North Sea Regional President Ariel Flores said: “Etap embodies the pioneering and innovative spirit the North Sea is renowned for around the world and shows what can be achieved when companies work together for the greater good of the region. When the project was sanctioned in the mid-1990s, BP and our Etap joint venture partners were applauded for our unique collaboration and high level of innovation. Here we are 20 years later, continuing to push boundaries in maximising recovery and extending field-life. Etap remains a key asset in BP’s refreshed North Sea portfolio and our enduring North Sea presence.”

The team won an OGA award for MER: having recognised that the historic commercial agreements for Etap were becoming a barrier to further investment and resource recovery, they set about to realign ownership interests, decision-making and cost-sharing mechanisms to reflect the remaining value in the fields. The changes created a sustainable framework that has helped stimulate investment and change joint venture owner behaviours.

Etap comprises the following seven active fields: Machar (BP 100% operator); Madoes (BP 50% operator; ExxonMobil 25%; Shell 25%); Marnock (BP 100% operator); Mirren (BP 58% operator; ExxonMobil 21%; Shell 21%); Monan (BP 87.34% operator; Zennor Petroleum 12.65%); Mungo (BP 87.34% operator; Zennor Petroleum 12.65%) and Heron (Shell 50% operator; ExxonMobil 50%). Skua and Egret have ceased production. The fields, located east of Aberdeen, are named after saints or wildlife associated with Scotland.