Dunlin cluster transfer completed

Source: Energy Digital

Date :01/05/2008 10:28:36

The transfer of operatorship of the Dunlin cluster in the northern North Sea was formally completed at midnight on Wednesday.

As announced on December 21, 2007, Shell U.K. Limited (Shell) and Esso Exploration and Production UK Limited (ExxonMobil), each signed a Sale and Purchase Agreement with the UK subsidiaries of Fairfield Energy Ltd and the Mitsubishi Corporation for their respective interests in the cluster.

The cluster comprises Dunlin, Dunlin South West, and sub sea tie backs Osprey and Merlin.

Production

Fairfield has acquired 70 percent of the equity holding and operatorship and Mitsubishi has acquired 30 percent of the equity holding. The agreement includes all equity, associated infrastructure and production licences. AMEC has been appointed operational dutyholder.

The Dunlin cluster is located in water depth of around 151 metres, approximately 195 km north-east of Lerwick in Shetland. Current total cluster production is approximately 8,000 boe/d.

In 2007 Shell produced approximately 297,000 barrels of oil equivalent (kboe) per day in the UK, which is over ten percent of the UK’s 2007 production of 2.8 mboe per day. In conjunction with its co-venturers, Shell operates around 20 percent of the UK’s production of oil and gas.

Shell U.K. Limited is operator in the UK sector of the North Sea on behalf of Shell, Esso and other co-venturers.

May 1, 2008