Microsoft 6th Annual Global Energy Forum

E.ON Ruhrgas to develop the Babbage gas field in UK Southern North Sea

Phase 1 will consist of the installation of the normally unmanned installation (NUI), pipeline and the drilling of three initial wells from a central top hole platform.

Published Aug 6, 2008

E.ON Ruhrgas is planning to develop the Babbage gas field in UK Southern North Sea Block 48/2a via a production platform, subsea pipeline and development wells.

E.ON Ruhrgas said in an Environmental Statement that the development is planned in two phases. Phase 1 will consist of the installation of the normally unmanned installation (NUI), pipeline and the drilling of three initial wells from a central top hole platform.

The NUI platform will be fully manned during the first two years to support drilling operations. The 28km, 12-inch flexible carbon steel pipeline will link the Babbage wellhead to a subsea double block and bleed tee near the West Sole Bravo platform.

Phase 2 of the development will consist of one or two additional wells, although the development of these wells will depend on production data.

E.ON Ruhrgas intends to start drilling the initial Babbage wells on 1 November. Drilling of the three wells is expected to last from October to May 2009. Following completion of the production wells, the platform and pipeline will be installed in the second quarter of 2009, with first gas expected in the third quarter of 2009. The further two wells are expected to be drilled from June to October 2009, depending on production data.

The volume of gas initially in place is estimated at 434 Bcf (12.29 Bcm), with a possible range of 248-582 Bcf (7.03-16.49 Bcm). The base case recoverable reserves expectation is 182 Bcf (5.16 Bcm).

The Babbage field is expected to produce at a maximum rate of 75 MMcf/d (2.12 MMcm/d) for a period of up to 25 years, depending on the cessation of the West Sole

System facilities, which is expected in 2020 but has the possibility to be extended.

Babbage will be operated by E.ON Ruhrgas with a 47% stake, while Dana Petroleum will have 40% and Centrica 13%.