Hartshead reached agreement with Shell for gas offtake engineering study

Hartshead has reached an agreement with Anglo-Dutch supermajor Shell to carry out an engineering study for Phase 1 development of its UK Southern Gas Basin project.

Under the agreement, Shell will provide assurance on the final study into the preferred offtake route and agreed tie-in option for the Anning and Somerville offshore gas fields prior to commencing front-end engineering and design studies.

The engineering study will be conducted by Petrofac and will provide a basis for design and cost estimate for the preferred gas offtake route for the tie-in of Hartshead Resources’ (ASX:HHR) facilities to Shell’s Southern North Sea infrastructure and the required brownfield facility modifications.

This will in turn allow for gas produced from the two fields to be transported to Bacton for onshore processing and delivery to the UK Gas National Transmission System.

Work scope

The work with Shell will provide guidance in relation to the deliverables while ensuring that the output and results of Petrofac’s scope of work complies with the supermajor’s select phase for the feasibility study.

Petrofac’s study scope will include:

Offshore construction support for the subsea pipeline(s) tie-in activities on the Corvette to Leman Alpha export pipeline;
Installation of line-of-sight communication dishes and interface connection;
Pipework for successive stage-wise production flow routing, system control and integration production route export options across the asset; and
Control room integration of communications and all reporting systems with the new platforms.

hartshead resources asx hhr — Schematic of Hartshead’s License P2607 and Assets with proposed Gas Transportation Route via Shell’s Southern North Sea Infrastructure. Pic: Supplied

Anning and Somerville development

Hartshead plans to develop the Anning and Somerville fields through the use of six production wells connected to two wireline-capable Normally Unmanned Installation (NUI) platforms to access the combined proved and probable reserves of 301.5 billion cubic feet of gas at the two fields.

Peak production is estimated to be about 140 million standard cubic feet per day with first production expected in late 2024.

This plan has already received a Letter of No Objection from the UK North Sea Transition Authority, paving the way for the company to prepare and submit a Field Development Plan.

This article was developed in collaboration with Hartshead Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.