Contract signing after negotiations concluded as per KFELS advice, and fabrication of a rig hard to cover up, it might also be he's reiterating XEL's interest in the unit to keep COSL focused on giving XEL first priority as to who get's it. It is very strange that the other two units, MOPU and FSO, were not mentioned at the same time, they are after all interlocking components of the plan, and will take at least similar time to build. But they are specific to Bentley and at the same MOU stage. The rig could still go anywhere if the XEL commitment remains lagging, pending funding, DECC/FDP..
for new investors and a reminder for those who have been here a tad longer.
Incidentally this was a full year after it was announced in May 2013 an unnamed company (Statoil), had paid an unprecedented $15 million for the Bentley EWT data.
From an interview with Tom Dreyer; Statoil Vice President Exploration EXP in the North Atlantic.
June 2014 Tom Dreyer; Vice President Exploration EXP in the North Atlantic Statoil expands on Statoil’s ambition in the North Sea, describing the importance the company puts on informed risk in order to achieve exploration success.
Q. Bentley, the asset next to your Bressay field saw an extended well test. Xcite energy, Bentley’s owners sold the extended well test (EWT) data to yourselves. This, along with other considerations saw Statoil delay moving ahead with production before reconfiguring a more profitable development plan. What have been the implications of this?
Our business had investigated Bentley and Kraken – fields close to Bressay several times. However we had considered these two assets to be of the second division in terms of attractiveness as assets. When this EWT data was revealed detailing above average production it was Statoil’s duty to investigate.
Q. Do you think this information exchange represents the spirit of ‘collaboration’ the Wood Review was talking about? What further benefits can exchanges like this deliver?
In the UKCS, there are around four times as many operating companies as in Norway, and three quarters of these companies are small; some with brilliant minds behind them. If the company can find mutual benefit then that is fine.
Often small companies have niche-like ideas which can contribute notably towards developments. Collaboration could be bolstered greatly through improved means to access infrastructure.
Statoil is also not seeking to operate entirely on its own in the UKCS, but would welcome equity partners to work with the business. These could be large or small companies- the preference is only on the utility of what they might offer us.
Clearly the one that comes to mind in that regard is Statoil, but again somewhat odd that with the amount of time XEL have been in contact, far longer than CNOOC/COSL, that Statoil might not yet have all their ducks in a row with respect to involvement in Bentley. Maybe the involvement of CNOOC has thrown the fox into the henhouse somewhat in Norway, some consternation after all this time of inactivity there's another big foreign dog in the game.
Technically RC may be right in what he's said, the rig is now under construction, question clearly still needs to be just who will the end user be, XEL, or CNOOC/COSL North China.
TS Offshore may with the oil price moving back up be more comfortable to commit with KFELS if they have a letter of comfort from COSL the rig could be sent in either directon, after all they were supposed to be committing to two more of these units, neither of which orders appear to have been placed as yet. At least get construction started now. Impossible to believe unless a Bank has in turn provided a letter of comfort to COSL that XEL could commit more than an MOU at this point in time until the FDP is formally approved.
Could be there's some preparatory work to be done at Bentley, old well removal for example that having the rig there early in 2018 might facilitate same, before commencing via the MOPU to drill new wells at Bentley, so the rig could usefully be there early, but the other key item necessary, the FSO, also has to be available and there's been no indication fabrication of that unit has commenced as yet. So somewhat puzzling.
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