12th May 2020 18:33
(Alliance News) - Serica Energy PLC on Tuesday said it has signed a contract covering provision of a drilling rig for intervention work on the Rhum-3 well in the UK North Sea.
Serica is operator and 50% owner of Rhum, while IOC UK Ltd owns the other 50%, and said the work is to be carried out "on behalf of the Rhum partners".
Oil and gas exploration and production company Serica explained that Awilco Drilling's WilPhoenix - "a 3rd generation enhanced pacesetter, harsh-environment, mid-water, semi-submersible drilling rig" - will be used for the work.
The programme involves the recovery of debris which has een left in the well by its previous operator, as well as removal of an construction. Following this, the well will be re-completed and enter production. The well is already connected, Serica said, to subsea production infrastructure.
At present, Serica does not see any potential for Covid-19 and its associated regulations to stand in the way of executing the project.
Chief Exectuvie Mitch Flegg said: "We are delighted that this work will proceed in 2020. With a strong balance sheet, no debt and limited decommissioning liabilities, Serica is well-placed to weather the wider industry downturn related to Covid-19 and low commodity prices. This resilient position is enabling us to also continue with our previously stated work programmes.
"Bringing the [Rhum-3] well into operation will increase the production capacity of the Rhum field and will also improve the expected ultimate recovery of reserves. Having three rather than two wells will also provide more flexibility in the management of the field."
Shares in Serica ended 0.9% lower at 107.00 pence in London on Tuesday.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Serica Energy