Highlights:
- Agreement has been reached with Shell to conduct an Engineering Study for the preferred offtake route and agreed tie-in option for the Phase I field development.
- The offtake route is via a tie-in to Shell's Southern North Sea infrastructure for transportation to Bacton for onshore processing and delivery to the UK Gas National Transmission System
- The Engineering Study will be conducted by Petrofac and will provide a basis for design and cost estimate for the preferred gas offtake route for the tie-in of Hartshead facilities and the required brownfield facility modifications.
- Shell will provide assurance on the final study prior to commencing Front-End Engineering and Design studies.
Hartshead Resources NL (Hartshead, HHR or the Company) is pleased to announce that it has entered into an agreement with Shell UK Exploration & Production Limited (Shell), to undertake an Engineering Study for tie-in of Hartshead's Phase I gas field development to Shell's infrastructure. The Study agreement will provide a basis of design and cost estimate for the tie-in of facilities through Shell's infrastructure detailing the required brownfield modifications as part of the gas offtake route for the Anning and Somerville gas fields.
The study work will be undertaken by Petrofac and managed by Hartshead. Shell will provide project assurance, prior to entering the next phase of engineering work, which is the Front-end Engineering and Design (FEED), prior to final Field Development Plan (FDP) submission to the UK government.
The Engineering Study with Shell will define Hartshead's route to transport its natural gas and condensate to the prospective points of sale and is, therefore, a critical component of the future FEED and FDP workstreams.
The Company intends to fund the below scope of works, estimated to cost approximately £505,000, from existing cash reserves.
The scope of works with Shell encompasses:
- Provide guidance in relation to the deliverables.
- Ensure output and results of Petrofac Scope of Work fully complies with the Shell select phase for the feasibility study.
The scope of works with Petrofac encompasses:
- Offshore construction support for the subsea pipeline(s) tie-in activities on the Corvette to Leman Alpha export pipeline.
- Installation of line-of-sight communication dishes and interface connection.
- Pipework for successive stage-wise production flow routing, system control and integration production route export options across the asset.
- Control room integration of communications and all reporting systems with the new platforms.
The study is expected to take a total of 3 months. Upon completion the agreement will end.
About us:
ASX-listed Hartshead Resources NL is focussed on building a financially, technically and environmentally responsible European Energy business.
Hartshead's goal is to secure and invest in projects where resources can be extracted and delivered to meet Europe's growing energy demand while supporting the transition to a low carbon future.
In progressing this strategy Hartshead is focused on its 100% owned Production Seaward License P2607 comprising of five blocks which contain four existing gas fields in the UK Southern Gas Basin.
Hartshead brings together a highly experienced oil and gas team with specialised knowledge covering subsurface, engineering, commercial, QHSE and capital markets with the required skillsets needed to successfully and safely deliver oil and gas upstream projects.
