Talisman Energy's subsidiary to develop UK Beauly oil field

Canada's Talisman Energy reported its UK subsidiary and its partner Summit North Sea Oil have given the go-ahead for development of the Beauly oil field. Talisman has a 60 % interest and Summit holds the remaining 40 % interest in the area. First production is expected the fourth quarter of 2000 at an initial rate of 10,000 bpd.
A novel contracting arrangement with Global Marine Integrated Services (GMIS), has been the catalyst for the deal. Dr. Jim Buckee, President and CEO of Talisman Energy, said: "I am delighted that Beauly has come to fruition. Talisman believes strongly in the long-term future of the UK Sector, but recognises that this can only come about if the whole industry continues to challenge traditional ways of working. Beauly reflects this, and marks an exceptional level of cooperation between the infrastructure owners led by Agip, operator of the Balmoral FPV, BP Amoco on behalf of the Forties Pipeline and Brae Systems and with the contracting community, led by GMIS and Stolt Offshore."

Beauly (formerly known as Zeta) was discovered in 1998 in Block 16/21c of the Central North Sea. With expected reserves of only 3 mm barrels of oil, the oil field will be developed using a 4,000' horizontal extension to an existing well. This single well will then be completed and tied-back via a subsea pipeline to the Balmoral Floating Production System. First production is expected by the fourth quarter of 2000 at an initial rate of 10,000 bpd. The development is subject to DTI consent.
Mr. James McCallum, President of GMIS said: "Beauly has only been made possible by radical technical and commercial innovation. Our relationship with Talisman has been excellent throughout the project and we look forward to demonstrating that Beauly is a model for future UK marginal field developments."
Helen Liddell, Minister for Energy said: "Initiatives like this show that companies with the imagination to propose creative solutions can make small prospects economic. This is how we will capture thesubstantial value remaining in the North Sea."

Talisman Energy is the largest independent Canadian oil and gas producer. The Company has operations in Canada, the North Sea, Indonesia and Sudan. Talisman is also conducting exploration in Algeria and Trinidad.