UK: Maersk Approves USD 1 Billion Investment for Golden Eagle Development Plan

Maersk Oil, a fully-owned subsidiary of the A. P. Moller – Maersk Group, has approved its investment of $1 billion in the Field Development Plan for the Golden Eagle Area in the UK North Sea. Maersk Oil has a non-operated interest in the fields of 31.56% and its estimated share of reserves is expected to be around 45 million barrels of oil equivalent.

Subject to partner and regulatory approvals, construction of a platform and other infrastructure will begin in November this year. First oil is expected in 2014 with initial production rates at between 60,000-65,000 barrels of oil a day; Maersk Oil’s share is expected to be 19,000-21,000 bpd.

“The approval of the field development plan is an important step towards getting production going in the Golden Eagle Area. The area is home to one of the largest discoveries in the UK North Sea in recent years, and we are pleased to be partners in such a promising field development,” says Martin Pedersen, Managing Director of Maersk Oil UK.

The Golden Eagle Area comprises the Golden Eagle and Peregrine fields. Peregrine was known as Pink, while the Hobby discovery is now defined to be part of the Golden Eagle field. The fields were discovered 2007-2009 in Block 20/1 located 110 kilometres North East of Aberdeen. The fields are operated by Nexen (36.5%) with Maersk Oil, Suncor and Edinburgh Oil and Gas as partners.

Operator Nexen has estimated the Golden Eagle Area contains 140-150 million barrels of oil equivalent in gross recoverable contingent resources, making it one of the largest oil discoveries in the UK North Sea in recent years. Maersk Oil’s estimated share of reserves is expected to be around 45 millions of barrels of oil equivalent.

About Maersk Oil UK
Maersk Oil has interests in 14 producing fields and operates seven of those in the UK North Sea and North Atlantic. Maersk Oil holds interests in over 50 exploration licences, about half of which it operates. Development plans are expected in 2011 for the Flyndre area. Appraisal drilling is ongoing at the Culzean gas discovery to determine potential development options.