Business
Draft FDP and Farm-out Process Update
Draft FDP and Farm-out Process Update.
About this update from Orcadian Energy Plc
[{"type":"text","content":"\n \n \n The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.\n \n \n \n \n \n \n \n \n \n \n \n \n 13 June 2022\n \n \n \n Orcadian Energy plc\n \n \n \n \n (\"Orcadian Energy\", \"Orcadian\" or the \"Company\")\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Draft FDP and Farm-out Process Update\n \n \n \n \n \n \n Orcadian Energy (AIM:ORCA), the low-emissions North Sea oil and gas development company, is pleased to provide the following update.\n \n \n \n \n Highlights:\n \n \n \n \n \n \n · \n The Company has submitted a draft Field Development Plan for the Pilot oilfield to the North Sea Transition Authority (NSTA)\n \n \n · \n A structured farm-out process has been initiated for the Pilot oilfield\n \n \n · \n New tax regime has transformed economics of North Sea investment for tax-paying companies.\n \n \n \n \n \n \n Summary\n \n \n \n Orcadian has 79MMbbls of 2P reserves in the Pilot oilfield and the Pilot oilfield Field Development Plan (\"FDP\") builds upon work done in the concept select process which culminated in NSTA sending a \"letter of no objection\" to the low-emissions concept selected by Orcadian, as announced on 1 December last year. \n \n \n Orcadian's proposed low emissions, FDP for Pilot is based upon a Floating Production Storage and Offloading vessel (FPSO), with thirty-four wells to be drilled by a Jack-up rig through a pair of well head platforms and provision of power from a floating wind turbine. Emissions per barrel produced are expected to be about an eighth of the 2020 North Sea average, and less than half of the lowest emitting oil facility currently operating on the UKCS. On a global basis this places the Pilot oilfield emissions at the low end of the lowest 5% of global oil production. The draft FDP will be discussed and agreed between NSTA and Orcadian over the coming months but it cannot be approved until the associated development finance has been finalised. The structured farm out process, that has been initiated for Pilot, is a key pa...