Wireline Issue 44 - Spring 2019

Below: The blueprint for the HGS/Tolmount project.

“From an MER UK perspective, having infrastructure owners rather than field operators owning that infrastructure does allow the potential to create new hubs and to get more out of the ground in these areas.”

in motion, Craig noted that it provided a reasonable measure of tax efficiency. “It’s a lot better to have the expenditure down the operating curve rather than up front. It has worked for us in a lot of respects, and if we hadn’t come up with this arrangement it’s hard to see that the project would have actually moved forward,” he added. It is also a gateway opportunity for Kellas Midstream. Although built to accommodate peak production of up to 300 million cfd from Tolmount Main, the HGS platform and pipeline was conceived with overcapacity in mind, allowing for potential expansion of the field and surrounding area. “One of the important features was that the infrastructurewas not intended tobeTolmount- specific. The idea was that it should be a system that had potential to bring in either additional Premier-Dana opportunities that we hope are in the area, and third parties,” Eric noted. “That was an attraction for Kellas. They didn’t just want a single development, they were hoping it would provide an opportunity that the bigger pipeline and higher flow rates bring.” More than that, the setup of the HGS infrastructure, which includes investment in additional risers and J-tubes, enables lower field development and tie-in costs for those future projects. According to Kellas, the pipeline could become a hub for southern North Sea production for at least the next 20 years. This approach could be transformative for other areas of the UKCS. “From an MER UK perspective, having infrastructure owners rather than field operators owning that infrastructure, it does allow the potential

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