TIDMORCA
RNS Number : 9519P
Orcadian Energy PLC
23 June 2022
23 June 2022
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Report on carbon emissions solution for North Sea
Orcadian Energy (AIM:ORCA), the low-emissions North Sea oil and
gas development company, is pleased to announce that the North Sea
Transition Authority ("NSTA") published, this morning, the full
report prepared by the Company and its partners, for the Platform
Electrification competition launched in September 2021.
The competition sought electrification concepts that could
minimise carbon emissions for existing North Sea platforms.
"Orcadian's Microgrid Concept" aims to dramatically cut carbon
emissions, ensuring that the oil and gas that features in our
future energy mix is as sustainable as possible. The full report
and a summary are available from the Company's website.
Background
As announced on 9 May 2022, Orcadian and its consortium partners
have designed what they believe is a viable, reliable, off-grid
option for powering North Sea platforms. The approach is founded on
power from floating wind turbines, supported by energy efficient
and highly responsive gas-powered generators with enough battery
power to maintain a reliable supply. Floating distribution hubs
will be used to collect the power from the wind turbines and
distribute power to the operators' platforms through a network of
cables. The Directors believe this design can be more effective and
cost substantially less than cable from shore solutions, with a
potential to deliver an earlier and deeper cut to emissions. The
Directors also believe future operating costs can be substantially
reduced with this solution, which could enable mature fields to
keep producing longer and facilitate development of satellite
discoveries with minimised emissions. All of these outcomes would
enhance the UK's energy security and would ensure that emissions
from North Sea oil and gas production remain world leading.
Advantages of the Orcadian approach include:
-- Emissions reductions - approaching an estimated 80% reduction for offshore facilities.
-- Lower costs - potential saving of almost US$2 billion and
more than 25% cheaper compared to a solution that uses power from
the UK grid, when capital and ten years of operating costs are
included, for a subset of platforms.
-- A practical way for operators to meet their North Sea
Transition Deal commitments in terms of both the emission reduction
targets and timeframe.
-- Could be delivered quickly, and in phases, which allows a
staged deployment with a steadily improving reduction in
emissions.
-- Opportunities for the core infrastructure to be re-used or
redeployed - which could provide legacy infrastructure for the grid
and/or other users.
The full report, as well as the list of documents that can be
downloaded, is available on the company's website:
https://orcadian.energy/esg/net-zero-basin/
Steve Brown, Orcadian's CEO, said:
"The report we have produced with our partners provides a
solution that ensures that oil and gas can be produced with much
lower emissions and in line the North Sea Transition Deal agreed
with Government in 2021. Oil and gas will remain an important part
of the energy mix and the industry aims to deliver that energy in
the cleanest way possible. We look forward to working with NSTA,
the oilfield operators, as well as our partners to deliver this
concept as a reality on the UKCS."
For further information on the Company please visit the
Company's website: https://orcadian.energy
Contact:
Orcadian Energy plc + 44 20 7920 3150
Steve Brown, CEO
Alan Hume, CFO
WH Ireland (Nomad and Joint Broker) +44 20 7220 1666
Katy Mitchell / Andrew de Andrade (Nomad)
Harry Ansell / Fraser Marshall (Corporate
Broking)
Shore Capital (Joint Broker) +44 20 7408 4090
Toby Gibbs / Liam Zabludowicz (Advisory)
Tavistock (PR) + 44 20 7920 3150
Nick Elwes / Simon Hudson orcadian@tavistock.co.uk
Charlesbye (PR) + 44 7403 050525
Lee Cain / Lucia Hodgson
The Orcadian Consortium
Funded by the NSTA, the Orcadian consortium consists of Orcadian
Energy, Crondall Energy, Petrofac, Wärtsilä, Enertechnos, and North
Sea Midstream Partners and has developed an innovative solution
which realises significant emissions reduction through
electrification of existing facilities, whilst also breaking down
the electrification project into manageable pieces.
The Orcadian consortium has considered it vital to remember
during the conceptual design phase that the needs of the consumer
are the priority, and our approach has been to demonstrate a
secure, decarbonised, reliable power source that will be relatively
easy for operators to incorporate into their facilities.
Development of the microgrid solutions has only been achieved by
extensive collaboration between the consortium members, Orcadian
Energy, Crondall Energy, North Sea Midstream Partners (NSMP),
Wärtsilä, Enertechnos and Petrofac.
-- Orcadian Energy is the custodian of the microgrid concept,
acting as the microgrid system operator, owner of the commercial
model, and the technical concept.
-- Crondall Energy is Orcadian Energy's client engineering team,
managing the delivery and development of the Microgrid concept.
-- North Sea Midstream Partners (NSMP) are an infrastructure
investor and are also supporting the development of the commercial
model for the microgrid concept.
-- Wärtsilä is a global leader in innovative technologies and
lifecycle solutions for the marine and energy markets. Wärtsilä are
a key equipment vendor for the microgrid concept, providing highly
efficient, low emissions gas fired engines, as well as the energy
storage system.
-- Enertechnos is a cable technology provider, with their
patented cable providing the potential for a significant increase
in the transmission distance for MV AC power.
-- Petrofac is a global energy services company providing
expertise on how to implement the microgrid concept from an
Engineering Procurement and Construction (EPC) and Operations &
Maintenance (O&M) perspective.
About Orcadian Energy
Orcadian is a North Sea focused, low emissions, oil and gas
development company . In planning its Pilot development, Orcadian
has selected wind power to transform oil production into a cleaner
and greener process. The Pilot project is moving towards approval
and will be amongst the lowest carbon emitting oil production
facilities in the world, despite being a viscous crude. Orcadian
may be a small operator, but it is also nimble, and the Directors
believe it has grasped opportunities that have eluded some of the
much bigger companies. As we strike a balance between Net Zero and
a sustainable energy supply, Orcadian intends to play its part to
minimise the cost of Net Zero and to deliver reliable organic
energy.
Orcadian Energy (CNS) Ltd ("CNS"), Orcadian's operating
subsidiary, was founded in 2014 and is the sole licensee of P2244,
which contains 78.8 MMbbl of 2P Reserves in the Pilot discovery,
and of P2320 and P2482, which contain a further 77.8 MMbbl of 2C
Contingent Resources in the Elke, Narwhal and Blakeney discoveries
(as audited by Sproule, see the CPR in the Company's Admission
Document for more details). Within these licences there are also
191 MMbbl of unrisked Prospective Resources. These licences are in
blocks 21/27, 21/28, 28/2 and 28/3, and lie 150 kms due East of
Aberdeen. The Company also has a 50% working interest in P2516,
which contains the Fynn discoveries. P2516 is administered by the
Parkmead Group and covers blocks 14/20g and 15/16g, which lie
midway between the Piper and Claymore fields, 180 kms due East of
Wick.
Pilot, which is the largest oilfield in Orcadian's portfolio,
was discovered by Fina in 1989 and has been well appraised. In
total five wells and two sidetracks were drilled on Pilot,
including a relatively short horizontal well which produced over
1,800 bbls/day on test. Orcadian's proposed low emissions, field
development plan for Pilot is based upon a Floating Production
Storage and Offloading vessel (FPSO), with over thirty 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 field emissions at the low end of the
lowest 5% of global oil production.
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