Orcadian Energy Receives License Extension for North Sea Oil Discoveries

UK-headquartered oil and gas player Orcadian Energy has received a license extension, allowing it to pursue the development of two oil discoveries in the North Sea. The Elke and Narwhal discoveries, with net 2C resources of 45 MMbbl and 9 MMbbl respectively, are planned to be developed in tandem using wellhead platforms tied back to an FPSO vessel. The license extension for Phase B of the P2482 license grants Orcadian until July 14, 2027, to progress these developments.

Sproule, an auditing firm, has audited the resources and identified an additional 53 MMbbl of prospective resources with geological chance of success ranging from 64% to 87%. TGS has conducted extended elastic impedance analysis and will shoot 100 square kilometers of new 3D seismic over P2482 upon approval of the Pilot field development plan to further support these resources.

The license extension allows Orcadian to explore the area development plan with the North Sea Transition Authority alongside Ping Petroleum, the operator of Pilot. Ping is currently working on a low-emissions, phased field development plan for Pilot, which includes a polymer flood of the reservoir, an FPSO, and power provision from a floating wind turbine or local wind farm.

Steve Brown, CEO of Orcadian Energy, expressed his enthusiasm for the license extension, stating, “We are delighted to have received this license extension, which maximizes the probability of designing an area development plan that optimizes the development of all the viscous oil resources in the Pilot area. We believe that Pilot and Elke can form the basis of a new low-emissions hub for the development of major resources in this area.”

Orcadian is collaborating with the Independent Power Corporation (IPC) and the Marine Low Carbon Power Company (MLCP) to place the ownership of license P2680, containing Earlham and Orwell, into a corporate joint venture structure. This move aims to support the delivery of carbon-free energy from new offshore balancing power plants to IPC’s large energy user customers.

Steve Brown added, “We are also very enthused by the potential to be involved with IPC’s project to deliver reliable electrical power from our gas resources. We really believe that the IPC and MLCP projects can demonstrate that abated gas works and is critical to the success of the UK’s clean power plan.”