Alpha Petroleum has entered into agreements with Teekay Offshore for its Petrojarl Varg Floating Production Storage and Offloading (‘FPSO’) unit to be deployed to the Cheviot oil field. Cheviot is 100 per cent owned by Alpha Petroleum and is one of the largest undeveloped oil fields in the UK sector of the North Sea.
Further to the Front-End Engineering and Design (‘FEED’) study agreement between Alpha Petroleum and Teekay Offshore announced in April 2017, these latest agreements, which are subject to condition precedents such as financing, will facilitate Cheviot-specific process modifications to be made to the FPSO unit, ensuring that it can safely operate for the maximum 10-year term of the contract whilst maximising production. The modifications will be made by Sembcorp Marine Rigs & Floaters PTE. Ltd in Singapore with yard work on the FPSO scheduled to commence in the first quarter of 2019.
Alpha Petroleum expects to achieve sanction for the Cheviot development in Q4 2018 and is targeting first oil production in Q2 2021, at an expected rate of at least 30,000 barrels per day.