Zennor Announces OGA Approval for the Finlaggan Field Development & Signing of a £170mm Senior Secured Term Loan Facility
Tuesday 23 October 2018
Zennor Petroleum Limited announced that it has received approval from the Oil & Gas Authority (OGA) to proceed with the Finlaggan Field development in the UK Central North Sea (block 21/05c), of which it owns 100%.
The development project to recover 26mmboe of 2P gas condensate reserves will include two subsea production wells tied back 20km to the ConocoPhillips operated Britannia platform. First production from Finlaggan is expected in Q4 2020.
Operational update
The Finlaggan development wells are currently being drilled by Transocean’s Paul B Loyd Junior drilling rig. The first of the two development wells, F1, has been successfully drilled through the reservoir section and is cased, cemented and ready for completion and clean-up later in the drilling programme.
The subsea construction contract has been awarded to TechnipFMC, with the main installation works planned for 2019. This includes the laying of a 10” pipe-in-pipe production flowline and electrohydraulic control umbilical back to Britannia.
Financing update
Zennor is also pleased to announce the signing of a £170mm Senior Secured Term Loan Facility to fund the Finlaggan development into production.
The facility was structured, underwritten and syndicated by Societe Generale, London Branch to BNP Paribas, DNB (UK) Limited and Nedbank Limited (together with Societe Generale, the Mandated Lead Arrangers) and Investec Bank plc and Barclays Bank plc (as Lead Arrangers).
Zennor was advised on this transaction by N.M. Rothschild and Pinsent Masons LLP, whilst Bracewell (UK) LLP advised the banks.