Opportunities Available at SNS's Biggest Gas Discovery in 20 Years.
Tuesday 7 March 2017
Gas industry supply chain companies across the East of England are invited to show interest in opportunities on the biggest new gas discovery in the southern North Sea (SNS) for almost 20 years.
Confirmation of the £435 million first phase of the Tolmount project – with a 20-year lifespan – is expected in the next two weeks with announcements of agreements.
Premier Oil is about to start front end engineering design (FEED) work, with first gas expected at the end of 2020.
Stuart Wheaton, Premier Oil’s director & UK business unit head, chose the stage of the East of England Energy Group’s (EEEGR) SNS2017 conference to announce how imminent the project is with the final investment decision (FID) expected early next year.
Tolmount, off the Yorkshire coast, is an “exciting” and major project for the region that could open up other discoveries in the southern North Sea.
“It is the biggest discovery made in the SNS for about 20 years.”
He invited supply chain companies to contact the project to register their interest.
Believed to hold more than 500 billion cubic feet of gas, there is potential to take it to twice that size, Mr Wheaton told the conference at the Norfolk Showground.
Tolmount will be served by an unmanned platform with four initial wells and a new pipeline transporting gas to shore.
The significance of the discovery is similar to when ENGIE’s Cygnus field was found off the coast of Lincolnshire, from which first gas came into Bacton, Norfolk in December, Mr Wheaton said.
Front end engineering design FEED for the new gas hub is expected to take about nine -12 months, said Mr Wheaton.
The plan is to drill the four wells in 2020-2021 and then start production, he said.
“We have a really attractive project that’s about to start. It’s happening and, probably in one or two weeks’ time, you’ll see more agreements being put in place that will confirm that we’re really going to start. It’s really close.”
Many supply chain prospects and major tenders for construction work, operations and maintenance and “all manner of opportunities there” lay ahead, he said.
The first phase of Tolmount will cost £435 million. Premier bought its 50% stake in Tolmount from E.ON last year; Dana Petroleum holds the other 50%.
“We have gone through the conceptual stage for the project and we are expecting it to be a 50-50 venture with Dana.”
“The UK is very important to us as a company. It is our home. We have 35-40 people employed in East Anglia,” Mr Wheaton said.
“We are involved in collaborative working. There is clearly an opportunity in the region in Tolmount. Much of the project is close to wind turbine projects and it is about being collaborative with wind and understanding the territory.”
Simon Gray, chief executive of EEEGR, said after Mr Wheaton’s announcement: “This is such a significant annoucement for Premier Oil and our members working in gas in the southern North Sea and they heard it here first.
“We had more than 1000 delegates at our event, designed to inform, forecast and guide businesses in their future plans. Premier Oil’s announcement offers numerous opportunities for companies in our region and we’re all excited about what it will bring.”