Gas-to-Wire Deal to Boost UK CS Recovery

Nu-Oil subsidiary Marginal Field Development Company (MFDevCo) has entered into a collaboration agreement with Petrofac to chase opportunities in the recovery of stranded UK gas resources, Nu-Oil said June 19.

Instead of delivering cubic feet to the mainland by pipeline, the platform will be used to produce electricity for transmission to land, meaning some energy will be lost but infrastructure costs will be saved.

Petrofac will provide engineering support, and input to feasibility studies and opportunity screening working with MFDevCo to secure projects that will be developed and delivered using MFDevCo's gas-to-wire approach, which includes the use of technology supplied by Siemens, Nu-Oil said.

Petrofac will provide engineering and asset operations services on all gas-to-wire projects identified by MFDevCo, for an initial term of two years. But it is seen as the basis for longer-term collaboration with benefits that will increase as working practices are cemented and efficiencies increased going forward, said Nu-Oil.

Nu-Oil joint boss Alison Pegram said Petrofac has "extensive experience in the operation, maintenance and management of gas production facilities in the UK so we're very pleased to have secured their support for our gas to wire initiative as our project negotiations intensify. We believe this provides the final element required to allow us to move forward and demonstrates that, as a group, we have the capability necessary to deliver and operate these projects."

Petrofac's western hemisphere head of engineering and production Nick Shorten said: "At a time when industry is so firmly focused on extending the life of the UK continental shelf, we're delighted to be working with MFDevCo to offer new and existing clients a solution to get more from their gas reserves. By blending our capabilities and expertise, we believe we can provide cost-effective development solutions to unlock the full potential of marginal gas fields within the basin."