Rhum Gas Field Gets Green Light

22-May-2003

BP, on behalf of its co-venturer, today announced plans to develop the Rhum gas field at a cost of around £350 million. Development of the Rhum field, which was discovered in 1977, is challenging. The gas reservoir is subject to extreme temperatures and high pressure. Development of the field has been under review for some time but it has only been relatively recently that development has become viable. Outlining plans for the proposed development today, BP's Group Vice President and Technical Director, Ian Vann, said the announcement underlined BP's continued commitment to the North Sea. "The North Sea remains a very important part of BP's global business portfolio and will continue to be important for many years to come. While we'll be working to ensure our current assets can effectively compete for capital with other assets in the BP world, we'll also continue to look for appropriate growth opportunities. Rhum is a good example of the opportunities that still exist in the North Sea. "When Rhum was discovered back in the 70s, we knew we had a challenge on our hands to develop the field, given the difficulties at that time in doing so. But I'm pleased to say that through a combination of innovative thinking and our experience of North Sea challenges, we have advanced to the point where this difficult development is now viable. I'd also like to pay tribute to our joint venture partners in the project, the Iranian Oil Company UK (IOC) whose support and advice have been crucial in bringing the development forward," said Mr. Vann. Rhum represents the first development in the North Sea for the IOC. Brian Wilson, Minister for Energy & Construction, welcomes the project: "I am pleased to approve the Rhum development. The Rhum project is one of the most significant developments in the North Sea in the last twelve months. It clearly shows that there is significant potential in the North Sea and the scope for exploiting new fields, although challenging, brings great rewards. I am glad that BP is at the forefront of investing in the development of world-class technologies that enable them to venture into more challenging reserves to harness the power beneath the sea." A number of contracts for the project have already been let. These include the contracts for module fabrication, and detailed design and project management, both of which were won by Amec. It is expected that further contracts will be awarded in the coming weeks. The Rhum field is located 380km (240 miles) north east of Aberdeen in 109 metres (350 feet) of water. The field is 44km (28 miles) from the BP operated Bruce platform. The development of the field will involve a subsea tieback to the Bruce field with gas being exported onwards from Bruce via the Frigg pipeline system to St. Fergus. Associated condensate will be piped via Bruce into the Forties pipeline system. Rhum has estimated resources of 1.1 trillion cubic feet (31 billion cubic metres) of gas, of which, 800 billion cubic feet (23 billion cubic metres) is deemed recoverable. Work on the project will commence immediately with first gas expected late in 2005.

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