Kraken FPSO Sets Sail to the North Sea

Published at 09:47AM - 31/10/16

EnQuest Plc announced today that the floating, production, storage and offloading (FPSO) vessel that will operate in the Kraken development is now sailing to deep water anchorage.

The vessel has completed its shore-based commissioning activities at the quayside in Singapore, as well as the vessel’s inclination testing programme.

“The FPSO is on schedule to sail away to the North Sea during this quarter as planned. The journey should take approximately 50 days, bringing the vessel to the Kraken field on course for first oil in the first half of 2017,” EnQuest informed in a statement.

Kraken FPSO Sets Sail to the North Sea

The vessel is sailing to the UK North Sea to undertake commissioning work on the water injection pumps, HSP power fluid pumps, sulphate reduction packages, lifeboats and fire, water and deluge systems.

According to EnQuest, Kraken is one of the cornerstones of the company’s long term production portfolio.

Kraken FPSO Sets Sail to the North Sea
The Armada Kraken FPSO

Additionally, it is one of the largest current development projects in the UK North Sea, counting on an expected production life of up to 25 years and first oil targeted in 2017.

The Kraken development is owned by EnQuest (70.5%) and Cairn Energy (29.5%) and consists on a large heavy oil accumulation located in the East Shetland basin.

EnQuest Cuts Costs on Kraken

Earlier this month, EnQuest had announced cost savings on the Kraken oil field, following a restructuring deal.

As the company explained at the time, the full cycle capital expenditure estimated for Kraken was expected to suffer a cut of approximately US$100 million (£82 million), “mainly as a result of better performance on drilling and subsea production systems”.

The Kraken oil field is a large heavy oil accumulation located east of the Shetland Islands, estimated to contain approximately 140 million barrels of gross oil reserves.

The Armada Kraken FPSO is a harsh environment FPSO with a design life of 25 years without dry-docking.

The vessel has a capacity to handle 80,000 barrels of oil per day (bpd), with a storage capacity for 600,000 barrels.