The modules can be transported by truck to the North Slope which provides flexibility and reduces risk in the project schedule, the company said.Ĭapacity will be added in subsequent phases of the project. Oil Search said cost savings have been achieved by using standardized modular process facility design and off-the-shelf equipment. Phase 1 cost is estimated at $3 billion and is expected to produce oil at a breakeven cost of supply of less than $40/bbl Brent inclusive of 10% return. Oil will begin detailed engineering and procurement for the seawater treatment plant that will provide water to support the reservoir water-flood program. There will also be procurement of key items of materials and equipment with the ultimate aim of bringing Phase 1 on stream in 2025. It will address drilling milestones, including final designs for the wells and drilling processes and systems. The work will focus on the single initial drill site (Nanushuk B) along with pipelines and operations pad infrastructure including camps. It will also reduce project risk by ensuring the design supports optimal expansion to deliver full value from the significant Nanushuk reservoirs, the company continued. The FEED program will involve finalizing the design scope, execution plan, budget and schedule. Phase 1 involves a single drill site and a production facility with a capacity to produce 80,000 b/d of oil, the company said. Oil Search has begun front-end engineering and design (FEED) stage for Phase 1 of its Pikka oil development on the North Slope of Alaska.
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