Hurricane Energy has started spending on some of the early ‘big-ticket’ items needed in its $467 million investment programme to pump first-oil from its massive west of Shetland oil field by 2019.
This capital expenditure includes all pre-sanction work, including front-end engineering design studies, long-lead items and project management, as well as starting work on the FPSO and mooring buoy, ordering the fabrication of key subsea components such as Christmas trees, and additional studies in relation to the proposed location of the FPSO.
The Lancaster field is one of the largest undeveloped oil fields in Scottish / UK waters, with reserves recently revised upwards to more than 500 million barrels of oil.
Dr Robert Trice, Chief Executive, Hurricane Energy, said: “In order to keep to our timetable towards first oil from Lancaster in H1 2019 we’re investing now on pre-sanction long lead items, with expenditures to be incurred by the end of Summer 2017.
“By doing so, we reduce the risk that key equipment will not be available for installation during the benign weather window in Summer 2018.”
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