3D Oil Limited advises that, together with its joint venture partner in VIC/P57, Carnarvon Hibiscus Pty Ltd (Hibiscus), it has finalised the development concept for the West Seahorse oilfield and that Front End Engineering Design (FEED) has commenced.
Following a comprehensive review of a variety of alternatives, the joint venture has selected an offshore solution for the exploitation of West Seahorse based on a cost effective approach and minimum time to first oil. The development will consist of production via a leased Mobile Offshore Production Unit (MOPU) in to a leased tanker serving as a Floating Storage and Offloading (FSO) Vessel which will enable crude oil sales both locally and internationally.
The field life is anticipated to be 4 to 5 years, dependent on a number of factors including operating costs and oil price. Initial production rates are expected to be as high as 12,000 barrels of oil per day.
The Final Investment Decision (FID) is expected to occur immediately following Regulatory Approval which is expected in the fourth quarter of 2013 with oil production commencing in the first quarter of 2015. The Production Licence application is expected to be submitted to the National Offshore Petroleum Titles Authority (NOPTA) this month.
3D Oil’s Managing Director Noel Newell commented: “Choosing the optimum development concept is a significant step towards bringing the West Seahorse Field into production. It is a very exciting time for the company and ultimately transformative with first oil now on the horizon”
The Offshore Concept, selected by the West Seahorse Project team located in Melbourne, was chosen over the previously announced Onshore Solution based on the following drivers:
■ Reduced time to first oil. In addition, the risk profile for regulatory approval of the offshore concept is minimised due to the significant] reduction in number of stakeholders. First oil with the offshore solution can be kept on track for first quarter of 2015.
■ The FSO concept is a proven development concept in the Bass Strait and in other areas with similar harsh offshore environments (i.e. New Zealand).
■ The offshore solution opens the crude sales to both domestic and international markets, a factor now highlighted by uncertainty over the Shell Geelong refinery.
The FEED contract has been awarded to Melbourne-based engineering firm WorleyParsons and will be conducted in conjunction with the Regulatory Approval process leading to FID.
[mappress] Press Release, April 16, 2013