The Premier-operated Catcher area, located in the UK Central North Sea, is expected to produce 96 million barrels of oil equivalent with a peak production rate of around 50,000 barrels of oil per day.
The project will entail the drilling of 22 subsea wells (14 producers and 8 water injectors) on the Catcher, Varadero and Burgman fields which will be tied back to a leased FPSO. The oil will be offloaded by tankers while the gas will be exported through the SEGAL facilities.
All major service contracts have been awarded and the first oil is due to be pumped out by mid-2017.
Michael Fallon, Minister of State for Energy, said: “The Catcher development shows that there continues to be an extraordinary level of interest in North Sea oil and gas, which is excellent news for industry and for the whole of the UK. The project represents over £1bn of investment and almost all of the subsea expertise and equipment needed for this development is being supplied by British companies right across the country.”
Simon Lockett, Chief Executive Officer, said: “Having discovered Catcher in 2010, we are extremely pleased to have brought the Catcher area through the development approval process. Once on-stream this project, which has been facilitated by the government’s small field allowances, will underpin our growing cash flows.”
Scottish Energy Minister Fergus Ewing added: “This announcement follows a number of significant investment announcements made recently, which is testament to the confidence that exists in the sector.
“Scotland’s industry-led Oil and Gas strategy sets out an overall theme of maximising resource recovery through a focus on industry led innovation, skills and supply chain growth.
“With up to 24 billion recoverable barrels with a potential wholesale value of £1.5 trillion, more than half of the resources in the North Sea, by value, are still to be extracted. It is clear that the industry will make an important contribution to the Scottish economy for decades to come.”