Operated Assets | Non-Operated Assets  | Offshore Pipelines | Operations Map

Asset exchange with BP, which concentrates operations in the central North Sea

BG Group has one of the most significant exploration and production businesses in the offshore waters of the UK.
BG Group’s interests are focused on the central North Sea and the Group employs a hub strategy to most effectively maximise value from its UK portfolio.

Key dates

1993
Everest and Lomond onstream

1997
Armada and J-Block first production

2001
Blake and Elgin/Franklin first production

2002
Jade first production

2003
Seymour first gas

2006
Atlantic/Cromarty first gas

2007
Buzzard,West Franklin and Maria first production

BG Group believes there is significant remaining potential in the UK Continental Shelf (UKCS). The Group is actively pursuing opportunities around its infrastructure hubs by identifying nearby exploration prospectivity and third-party business.

In December 2008, BG Group announced an asset exchange with BP which completed on 31 August 2009. BG Group acquired BP’s equity in the Everest, Lomond and Armada fields and part of BP’s equity in the Erskine field, all located in the UK central North Sea. In return, BG Group transferred its equity interests and operatorship in fields in the southern North Sea to BP. This transaction concentrates BG Group’s position in the central North Sea and gives the Group control of key infrastructure hubs.

As part of the transaction, BG Group took over operatorship of Everest and Lomond. BG Group also operates the Armada (Fleming, Drake and Hawkins), Maria and Seymour fields in the central North Sea; and the Blake and Atlantic fields in the Outer Moray Firth. In addition, BG Group retains significant non-operated holdings in the J-Block and Elgin/Franklin areas in the central North Sea, and the Buzzard field in the Outer Moray Firth. These are operated by ConocoPhillips, Total and Nexen respectively.

In addition to the core production hubs and exploration and appraisal interests on the UKCS, BG Group has a 51.18% interest in the Central Area Transmission System (CATS) offshore pipeline and onshore processing facilities, a 7.86% stake in the Shearwater Elgin Area Line (SEAL), and a 15.98% interest in the SEAL Interconnector Link (SILK) pipeline.

OPERATED ASSETS	back to top

Armada Hub Area

The BG Group-operated Armada gas condensate fields (Fleming, Drake and Hawkins) extend over 31 square kilometres and span five exploration blocks. Production began in 1997. Following the asset swap with BP, BG Group now owns 76.42% in Armada.

The SW Seymour area of the
BG Group operated Seymour field (BG Group 57%) was appraised successfully and drilled from the Armada platform, with first production in 2003. A second well in the NW Seymour area was brought into production in 2006. Plans for further development are under review.

In 2003, BG Group assumed operatorship, on behalf of a consortium with Total and Centrica, of the fallow Maria 16/29a-11Y discovery. Appraisal drilling identified and confirmed the viability of the discovery. Sidetrack drilling then confirmed an extension into the adjacent Maria Horst prospect. Maria (BG Group 36%) was developed via two sub-sea wells and tied back to the Armada platform, with production beginning in December 2007.

The commingled stream of Armada, Seymour and Maria gas is exported via the CATS pipeline to Teesside. Liquids are transported through the Forties Pipeline System (Forties) to the Kinneil processing plant at Grangemouth. In 2008, a combined peak rate of 227 mmscfd and 17 544 bopd was achieved.

The Rev field, a third-party two-well sub-sea development in the Norwegian sector of the North Sea, has been tied back to the Armada platform. Production began in January 2009. BG Group receives a tariff payment for processing this production.

Everest and Lomond

On 31 August 2009, BG Group took over operatorship of the Everest field, and increased its interest to 80.46%. Everest is situated in the central North Sea and first production began in 1993. An average production rate of
91 mmscfd and 2 783 bopd was achieved in 2008. Gas is exported via the CATS pipeline. Produced liquids go via Forties to Kinneil.

On 31 August 2009, BG Group took over operatorship of the Lomond field, and increased its equity stake to 83.33%. Lomond is situated in the central North Sea and first production began in 1993. An average production rate of
92 mmscfd and 1 702 bopd was achieved in 2008. In addition, production from the Erskine field is processed on the Lomond facility. Gas is exported via the CATS pipeline. Produced liquids go via Forties to Kinneil.

Everest and Lomond were developed in parallel. From October 2008, BG Group’s equity gas from the two fields has been sold uncontracted into the UK market.

Atlantic/Cromarty

BG Group has a 75% interest in the Atlantic field in the Outer Moray Firth, and 10% in the adjacent Cromarty field. The fields have been developed with three wells and a long sub-sea multi-phase flow pipeline, the Western Area Gas Evacuation System (WAGES), tied into the Scottish Area Gas Evacuation (SAGE) terminal at St Fergus. Production began in 2006. As expected, wells have been on intermittent production in 2009 and plans for end-of-life operations are in progress.

Blake

BG Group has a 44% interest in, and is operator of, the Blake field, which is located 100 kilometres from Aberdeen in the Outer Moray Firth. Production started in 2001.

The field was developed in two phases. The first phase was the Blake Channel, which is a sub-sea development of six producing wells and two water-injection wells, tied back to an existing floating production, storage and off-loading (FPSO) vessel located over the Ross field some 9.5 kilometres away.

Development of the second phase, Blake Flank, was completed and production commenced from two wells in 2003. This sub-sea development is tied back through the existing Blake facilities to the Ross FPSO vessel. An average total field rate of 16 225 bopd was achieved in 2008.

Jackdaw

In 2008, exploration and appraisal work continued on the Jackdaw discovery in the central North Sea. Jackdaw (BG Group operated) straddles Blocks 30/2a (pre-tertiary, BG Group 44.1%) and 30/2c (BG Group 35%). Results from the exploration and appraisal programme wells are being utilised to evaluate potential development concepts.

Elgin/Franklin area

The Elgin/Franklin high-pressure/ high-temperature (HPHT) gas condensate fields are located in the central North Sea. The fields began production in 2001. A total of 16 wells, seven from Elgin and nine from the Franklin platforms (including the two wells from the West Franklin field), produced at an average rate of 388 mmscfd and 73 000 bopd during 2008. Total operates the Elgin/Franklin fields in which BG Group has a 14.11% interest.

A separate field,West Franklin (BG Group 14.11%), started production in 2007 and a further well was brought into production in 2008. In 2008, the West Franklin B appraisal well identified additional potential reserves. Ultimate resources have been significantly increased and are now estimated at close to 200 mmboe with additional drilling.

The HPHT Glenelg field (BG Group 14.7%), in Block 29/4d, started production in 2006. The field has been developed through a single high-departure well drilled from the Elgin wellhead platform.

Elgin/Franklin,West Franklin and Glenelg gas is exported through SEAL, a common export pipeline shared with the nearby Shell-operated Shearwater field, to the onshore gas reception facilities at Bacton in Norfolk. Liquids are exported through Forties to the Kinneil processing plant at Grangemouth.

J-Block and Jade Area

The ConocoPhillips-operated Judy/Joanne (J-Block) (gas condensate/oil) and Jade (gas condensate) fields are located in the central North Sea. BG Group has a 30.5% interest in J-Block and 35% in Jade. Production began from J-Block in 1997 and from Jade in 2002.

The Joanne field is a sub-sea development tied back to the manned Judy platform through two 5.5 kilometre pipelines. The Judy/Joanne fields currently produce from 16 wells. Jade was developed using a normally unmanned wellhead platform and currently produces from seven wells. Production from Jade is exported via a sub-sea pipeline to the Judy platform where it is commingled and processed with Judy and Joanne production. The combined gas stream is then exported via the CATS pipeline to Teesside and the combined liquids stream exported via Norpipe to the Norsea oil terminal at Teesside. The 2008 combined average production rate from the fields was 336mmscfd and
26 900 bopd.

In 2008, exploration and appraisal work continued on the Jasmine discovery, 9 kilometres east of the Judy platform. The Jasmine discovery straddles Blocks 30/6 and 30/7a (BG Group 30.5%). The Jasmine development will comprise a wellhead platform, with separate bridge-linked accommodation, tied back via a multi-phase pipeline and a new riser platform to the existing Judy production facilities. First production is anticipated in 2012.

Buzzard

BG Group has a 21.73% interest in the Nexen-operated Buzzard oil field, located in the Outer Moray Firth, 100 kilometres north-east of Aberdeen. The field was discovered in 2001 and came onstream in 2007.

The facilities consist of a complex of three bridge-linked platforms, with oil export via Forties and gas export via the Frigg system. With total estimated ultimate resources exceeding 700 mmboe, the field is one of the largest discovered in the UKCS in more than ten years. 2008 average production was
207 000 boed gross. In early 2008, BG Group and partners sanctioned the Buzzard Enhancement Project, an additional processing platform to remove hydrogen sulphide and extend plateau production. This is due to be installed in 2010.

Erskine

Following the asset swap with BP, BG Group owns a 32% interest in the Chevron-operated HPHT Erskine field. Gas and liquids produced from the field are processed on the Lomond platform, with the gas then transported via the CATS pipeline, and liquids via Forties.

CATS

BG Group has a 51.18% interest in the CATS pipeline and terminal, which is operated by BP. The 404 kilometre CATS offshore pipeline became operational in 1993, and transports gas to Teesside from the Everest, Lomond, Andrew, Armada, Seymour, Judy/Joanne, Jade, Erskine, Banff, Eastern Trough Area Project (ETAP), Maria and Montrose Arbroath fields (all in the central North Sea). In January 2009, CATS also started transporting gas from the Rev field, in the Norwegian sector of the North Sea. The pipeline has a peak gas capacity of around 1 700 mmscfd.

Onshore, the CATS Teesside terminal includes two trains of gas processing equipment, with a total capacity of around 1 200 mmscfd. Train 1 became operational in 1997 and Train 2 was brought onstream in 1998.

SEAL and SILK

BG Group has a 7.86% interest in SEAL, a 480 kilometre gas export pipeline to Bacton. With capacity of around 1 150 mmscfd of dry gas, it has been transporting gas from the Elgin/Franklin and Shearwater fields since 2001.

BG Group also has a 15.98% interest in the 900 metre SEAL Interconnector Link (SILK) pipeline that provides direct access from SEAL to the UK-Continent Interconnector pipeline.

Easington Catchment Area and Amethyst

As part of the asset exchange agreement with BP, BG Group has transferred its exploration and production interests in the southern North Sea to BP. These include the Easington Catchment Area fields (Apollo, Artemis, Mercury, Minerva, Neptune, Wollaston and Whittle) and the Amethyst field. BG Group also transferred its operatorship of the Apollo, Artemis,Mercury, Minerva and Neptune fields to BP.