Economic Report 2013

• Construction works to be completed over a three-year period from 2013 to 2015. A flotel (floating hotel) will be on location for ten monthstoprovideadditional accommodation over the various phases of construction. At their peak, the upgraded facilities are expected to produce 55,000 boepd from the MAR fields and the annual average will be some 35,000 boepd The BLP has four significant elements (jacket, deck, bridge and flare), requiring the design, procurement, construction and commissioning of over 17,000 tonnes of materials and equipment. The jacket includes three caisson riser systems to facilitate the tie-in of the Cayley and Shaw pipelines and umbilical lines, whilst providing spare risers and a J-tube for future developments. The deck houses state-of-the-art process facilities for separating the hydrocarbon streams

from Cayley (gas condensate) and Shaw (oil and associated gas), produced water treatment and water injection. The development uses existing oil and gas export subsea facilities, although gas will now be exported through a new rigid caisson riser system located on the BLP. Subsea isolation valves (SSIVs) are being installed on all new production and gas lift pipelines and will be contained within a single structure to the north-west of the BLP. The subsea field developments of Cayley and Shaw require 100 kilometres of pipelines to be procured, assembled and installed to tie-back seven subsea wells from three drilling centres. Some 600 kilometres of control hoses and tubing will be manufactured into umbilical lines contained within pipeline bundles to distribute hydraulic fluids and chemicals across the fields.

Figure 31: Layout of the Montrose-Arbroath Project

• Since production started in 1976, over 270 million boe of oil and associated gas have been produced • The MAR project will unlock 100 million barrels of reserves when it comes on-stream in 2016 and will create or sustain more than 2,000 jobs during construction, fabrication, installation, subsea engineering and drilling • Oil is exported via the Forties Production System (FPS) to Cruden Bay and then on to Grangemouth • Gas is exported via the Central Area Transmission System (CATS) to Teesside • The project was the first to be awarded a BFA

Key Facts • TSE UK and its co-venturer, Marubeni, will invest £1.6 billion in the MAR project • MAR encompasses four fields in Palaeocene-aged reservoirs (Montrose, Arbroath, Arkwright and Brechin), four fields in Jurassic-aged reservoirs (Wood, Godwin, Cayley and Shaw) and a Zechstein-aged reservoir (Carnoustie) • The fields are located approximately 210 kilometres north-east of Aberdeen

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ECONOMIC REPORT 2013