UK-focused oil and gas company Siccar Point Energy has made an application for consent to the Oil and Gas Authority for an environmental statement for the Cambo field development located near the UK/Faroe Island transboundary line.
The Cambo oil field is located within the UK Continental Shelf Blocks 204/4a, 204/5a, 204/9a and 204/10a, in the West of Shetland region.
The proposed development footprint is situated in water depths of between 1,050m in the southeast to 1,100m in the northwest within the Faroe-Shetland Channel. The nearest coast line is the Shetland Islands, located approximately 125 km to the east.
The subject of the environmental statement comprises a dedicated, moored Floating Production, Storage and Offloading (FPSO) vessel to produce hydrocarbons from two drill centers (comprising eight new production wells and four water injection wells).
Additionally, the Cambo 204/10a-5Y well, drilled as an appraisal well in 2018, will also be completed for production.
Oil is planned to be exported via shuttle tanker and gas will be exported via a gas export pipeline (situated at water depths of 1,085m to 190m) extending 70 km to the southeast of the Cambo field, terminating at the West of Shetland Pipeline (WOSPS).
The Cambo field is expected to produce oil and gas for approximately 25 years. According to Siccar Point Energy, offshore development activities are currently due to start at the Cambo field in 2021, with first drilling operation currently planned in 2022. First oil is expected in 2025, according to Siccar Point Energy.
The project is subject to an environmental impact assessment procedure and regulation 13 applies as the project could have a significant effect on the environment of the Faroe Islands, Siccar Point said.
The OGA is responsible for deciding whether or not to grant consent for the project, but an agreement to the grant of consent must be obtained from the Secretary of State for Business, Energy, and Industrial Strategy prior to consent being granted.
Siccar Point, with its partner Shell, in March last year delayed the planned sanction for the Cambo offshore project to the second half of 2021, citing "the unprecedented worldwide macroeconomic dislocation resulting from Covid-19."
The Cambo field, located 125km northwest of the Shetland Islands and in a water depth of 1100m, was discovered in 2002, and subsequently had 4 appraisal wells drilled up to 2012 and a final successful appraisal well was drilled and flow tested by Siccar Point during the summer of 2018.
According to Siccar, which acquired the Cambo licenses from OMV in 2017, Cambo is one of the largest undeveloped fields in the UKCS and will open up other prospects for potential development in the area.
According to FPSO information specialists World Energy Reports (WER), Sembcorp Marine in August 2019 received the FEED contract for the Cambo FPSO -- utilizing a new build Sevan SSP cylindrical FPSO design, with KBR subcontracted for the topside design.
Plans at the time called for an FPSO with a capacity to produce 60,000 b/d and store 650,000 bbls.
In its recent FPSO report, released in May, WER said: "We see the project FID in 2022-- with production start in 2025/26 -- assuming Siccar Point brings in an additional farm-in partner, which it is planning to do. As of Q2 2021, Siccar Point is planning to hive off 40% share in the license."
Siccar Point is the operator and has 70% interest in Cambo. In April 2018, Shell farmed into licenses P1028 and P1189 and now has 30% interest in Cambo.
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