Forties blend could turn sweeter in 2012 as oil from Canada-based Ithaca's UK North Sea Greater Stella Area (GSA) is blended into the stream.
Ithaca wants to tie the accelerated GSA development into the Elgin-Franklin or Shearwater fields, which export liquids into the benchmark-setting Forties stream. GSA is expected to produce around 20,000 b/d of oil equivalent (boe/d) in 2012, rising to over 30,000 boe/d in 2013. Ithaca has yet to give a breakdown of the relative proportions of crude, condensate, and natural gas, although the company said it is now placing a greater emphasis on production of liquids.
GSA crude has tested at 40 API and condensate at 48 -49 API, both with virtually no sulphur content, according to Ithaca. Recent Forties output has weighed in at around 40 API with a sulphur content of 0.65pc, mainly because of a 180,000-200,000 b/d contribution from Nexen's Buzzard field.
Uncertainties over future Buzzard production make it unclear how far GSA production would affect the value of Forties.
Ithaca stresses that a tie-in to the Forties stream is only one of the options under consideration for the development of the GSA.
The company has raised $150mn through a share placing and this, combined with debt financing, allows the development of the GSA Stella plus the Harrier and Hurricane discoveries to be brought forward by one year. Stella will cost $300mn to develop and the Harrier gas field another $80mn.
The GSA project is particularly important for Ithaca as it accounts for 70pc of the company's booked reserves.
Ithaca wants to tie the accelerated GSA development into the Elgin-Franklin or Shearwater fields, which export liquids into the benchmark-setting Forties stream. GSA is expected to produce around 20,000 b/d of oil equivalent (boe/d) in 2012, rising to over 30,000 boe/d in 2013. Ithaca has yet to give a breakdown of the relative proportions of crude, condensate, and natural gas, although the company said it is now placing a greater emphasis on production of liquids.
GSA crude has tested at 40 API and condensate at 48 -49 API, both with virtually no sulphur content, according to Ithaca. Recent Forties output has weighed in at around 40 API with a sulphur content of 0.65pc, mainly because of a 180,000-200,000 b/d contribution from Nexen's Buzzard field.
Uncertainties over future Buzzard production make it unclear how far GSA production would affect the value of Forties.
Ithaca stresses that a tie-in to the Forties stream is only one of the options under consideration for the development of the GSA.
The company has raised $150mn through a share placing and this, combined with debt financing, allows the development of the GSA Stella plus the Harrier and Hurricane discoveries to be brought forward by one year. Stella will cost $300mn to develop and the Harrier gas field another $80mn.
The GSA project is particularly important for Ithaca as it accounts for 70pc of the company's booked reserves.
