ROVworld Subsea Information

Kerr-McGee Underlines North Sea Commitment With BP Buys
Date: Wednesday, September 08, 2004 @ 06:20:41 EDT

Kerr McGeeAmerican oil company Kerr-McGee showed its commitment to the UK North Sea yesterday by acquiring interests in five blocks from BP.

The Oklahoma City-based group has purchased four exploration licences covering the blocks in the deal, worth an undisclosed sum.

The blocks are understood to have a number of drilling opportunities, which will be investigated by Kerr-McGee.

Terence Jupp, the group's UK managing director said: "Acquiring positions in these blocks bolsters our commitment to exploring the central North Sea - one of our core operating areas.

"These blocks are located near existing infrastructure, which would allow for economical development of future discoveries.

"The acquisition also demonstrates strong alignment with the Department of Trade and Industry's fallow-block initiative by stimulating new activity in these blocks."

Graham Tran, regional officer with the Amicus union, said he welcomed news of the deal as it could lead to development of more new fields in the North Sea.

He hoped that Kerr-McGee would come out soon with more details of its plans for the blocks.

Kerr-McGee expects to drill four to six exploration wells in the UK North Sea every year for the foreseeable future.

An Aberdeen spokesman for the company said: "These acquisitions become part of our inventory from which we will drill these future wells."

Tim Summers, director and business unit leader of BP's North Sea business, added: "This deal builds on BP's track record of stimulating industry drilling activity through proactive business development. In this way we create value for BP, the companies with whom we collaborate - such as Kerr-McGee - and the industry in general."

Kerr-McGee operates the Gryphon, Janice, Leadon and Tullich fields in the UK North Sea.

Development planning for the discoveries at James, Donan and Affleck is progressing.

James will be a subsea tieback to the Janice infrastructure, with first production expected early next year.

How Donan and Affleck are to be developed is still to be decided, but first oil is expected in mid-2006.

The blocks and stakes involved in yesterday's deal are:

  • Block 22/25a (excluding the Mirren and Merganser fields) - 66%
  • Block 23/26a south (excluding the Machar and Erskine fields) - 50%
  • Block 30/1a - 50%
  • Block 30/1e - 50%
  • Block 22/15 - 65%

Source: The Press & Journal

This article comes from ROVworld Subsea Information

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