End of Road for Buchan Alpha
Friday 24 February 2017
Repsol Sinopec Resources UK is preparing to cease production from its Buchan Alpha floating production unit in the UK North Sea within weeks before the facility is taken off station for good between July and September, bringing a potential redevelopment a step closer.
The ageing pentagonal-design floater’s structural integrity has been a source of concern for several years and production is restricted when waves are greater than 6.75 metres, which has led to interruptions.
This week, the operator confirmed it is in the process of applying to the UK authorities to cease output from the two fields that feed into Buchan Alpha, which is still producing about 3500 barrels per day.
In parallel, Repsol Sinopec is understood to be continuing to screen options for a potential redevelopment to exploit the resources that remain in the fields as part of wider asset strategy review.
“In compliance with the current Safety Case, as accepted by the Health & Safety Executive (HSE), Buchan Alpha is scheduled to be permanently removed from its current location during the third quarter of 2017,” a Repsol-Sinopec spokesman stated.
“In recognition of this Safety Case obligation and to allow off-station activities to progress, Repsol Sinopec is also applying to the Oil & Gas Authority (OGA) for approval to suspend production of both the Buchan and Hannay fields, commencing April 2017.”
An OGA spokesperson said: “In line with our principal objective of achieving MER UK, the OGA is working closely with Repsol Sinopec to assess remaining economic potential within the Buchan and Hannay fields.”
In 2011, the HSE ordered then-Talisman Energy to submit a revised Safety Case for Buchan A amid concerns structural integrity was not being managed properly.
This was before Chinese energy giant Sinopec took a 49% stake in the Canadian company’s North Sea business in 2012, creating Talisman-Sinopec Energy UK. Talisman was later sold to Spanish company Repsol.
HSE issued the rare request because it felt Talisman’s inspection regime might not identify potential cracks in Buchan’s legs and supporting braces early enough to prevent them from deteriorating to a point where it was at risk of suffering a primary structural failure.
This was followed by further revisions to the Safety Case.
In May 2014, a Safety Case was submitted setting out how a phased shutdown of the platform would be achieved by 2017 and how the integrity of the platform and the safety of workers would be assured in the meantime.
The HSE accepted the Safety Case in September 2014.
The Buchan field lies in Block 21/01a and 20/05a, about 156 kilometres north-east of Aberdeen in a water depth of 116 metres.
The Hannay subsea tie-back is located 13.5 kilometres north-west of Buchan.