Ithaca Gains Access To North Sea Pipeline

Published at 09:41AM - 22/06/16

Ithaca Energy announced today it has secured access to the Norpipe oil pipeline system.

This will enable exports from the Greater Stella Area (GSA) to be transferred from tanker export to pipeline export in 2017, the company informed.

“This will significantly reduce the fixed operating costs of the GSA facilities and enhance operational uptime, resulting in improved reserves recovery and increasing the long-term value of the GSA as a production hub”, Ithaca said in a statement.

Ithaca Gains Access To North Sea Pipeline

According to Ithaca, a connection to the system has already been created as part of a fast-track operational programme during the pipeline’s planned shutdown in 2016, for maintenance purposes.

This work was made possible after a conventional tie-in point on the system was vacated by a third-party field, which disconnected from the pipeline, it added.

Ithaca Energy Greater Stella Area Map
Ithaca Energy Greater Stella Area Map
Click To Enlarge

“This provided a unique opportunity for a lower cost, lower risk connection to be made,” the company stated.

The GSA, operated by Ithaca, is located in the Central Graben area of the Central North Sea, on the UK Continental Shelf (UKCS). First production from the Stella field is expected in September this year.

 US$20m Deal For The FPF-1 Programme

The Norpipe pipeline runs approximately 350 kilometres (217.5 miles) from the Ekofisk offshore production facilities on the Norwegian Continental Shelf (NCS) to a dedicated oil processing facility in Teesside, UK, from which various UK fields export into the system.

As well as this, Ithaca has secured a lump sum contract for the installation of the 44 kilometre (27.3 mile) pipeline required from the FPF-1 modifications programme to the Norpipe system.

The programme has a net capital expenditure of approximately US$20 million (£13.6 million) being paid in 2017.

The FPF-1 is being completed by Petrofac in the Remontowa shipyard in Poland and is currently in the final stages of completion.

Last updated on 05:25PM - 23/06/16