Dunlin
Fairfield equity = 70%
Mitsubishi equity = 30%
Asset Overview
The Dunlin cluster of fields consisting of Dunlin, Dunlin SW, Merlin, Osprey, Skye and Block 6 (the ‘‘Dunlin Cluster’’) is located in Blocks 211/18, 211/23 and 211/24 of the UKCS, some 500km north-northeast of Aberdeen within the East Shetland Basin, and 11.2km from the boundary line with Norway.
Background
The Dunlin field came on production in August 1978 and reached a plateau of approximately 120,000 bopd early in field life. During the following years there was an active programme of drilling and approximately 100 wells have been drilled from the Dunlin Platform. As with most Brent formation oil fields, Dunlin relies on consistent water injection to maximise recovery. In 2001 the Dunlin Platform became fuel gas deficient and the result was a marked reduction in production caused by a reduction in water injection.
There are currently 10 active production wells and two active injection wells in the Dunlin field with four further injection wells requiring only repair to their surface pipe work to be restored to injection.
Cumulative gross production to the end of 2009 is 377 MMbbls from an oil-in-place volume of 778 mmstb, a recovery factor of 48.5 per cent. Going forward, first gas from NLGP is expected during the second half of 2011 following a shutdown of the Dunlin Platform for planned maintenance.
Exploration History
The Dunlin field straddles Blocks 211/23a and 211/24a. Block 211/23a was awarded to Shell UK and Esso Exploration and Production UK Limited (‘‘Esso’’) in 1972, and Block 211/24a was awarded to a ConocoPhillips Company (‘‘Conoco’’)-led consortium in 1970. Dunlin was discovered by Shell UK with well 211/23a-1 in 1973, its eastward extension into 211/24 being confirmed by Conoco late in 1973. Production from the field commenced in 1978.
The Dunlin SW field was discovered in 1973 with the 211/23a-2 well, but was not brought on to production until 1996 when an extended reach well was drilled from the Dunlin Platform. A second infill well was drilled in 1998. Both wells are currently producing. The field receives pressure support from distal Dunlin field injection wells.
The Osprey field, eight kilometres to the northwest of Dunlin, was discovered with appraisal well 211/23a-3 in 1974. The discovery has been developed as a subsea tie-back to Dunlin with first production in January 1991.
The Merlin field was discovered by the first side-track of exploration well 211/23a-13 in February 1997. Following development approval in August 1997, the field commenced production in November 1997 as a subsea tie-back to Dunlin. Subsequent development in 1999 saw the installation of water injection, along with a second production well. A third production well was drilled in 2001.
In April 2008, Fairfield and the MCX Companies, subsidiaries of Mitsubishi Corporation, acquired the GDA Producing Fields from subsidiaries of Shell, ExxonMobil, Statoil and OMV.
Partnership
The GDA Producing Fields are operated by Fairfield, which has appointed AMEC as dutyholder. AMEC has a long association with the Dunlin Platform, and a significant proportion of the platform crew were already employed by AMEC at the time of acquisition. AMEC and Fairfield worked together in the year preceding the acquisition of the asset to evaluate its physical condition, its operating challenges and its opportunities. An operating model has been developed in which AMEC as duty holder operates the platform offshore and provides onshore support, whilst Fairfield manages the asset, subsurface development, license obligations, drilling, well operations and pipelines.
Decommissioning
Following the maximum recovery from any of its fields, Fairfield consults rigorously with stakeholders before the inevitable decommissioning.
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Dunlin
Fairfield acquired 70% of Dunlin in 2008 and it is now operated in conjunction with duty holder Amec.
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Crawford
Fairfield holds 25% interest in the Crawford Oilfield, located in the Central North Sea. It holds almost 200 million barrels of Oil in Place.
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Staffa
The Staffa Oilfield is located in the NNS. Fairfield was awarded 100% interest in block 3/8d in the 25th Licensing Round in 2009.
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