Hurricane Energy Plc (LON:HUR) told investors that it has taken the final investment decision for the Lancaster early production system (EPS) which is now on track for ‘first oil’ in the first half of next year.
The UK offshore oiler, in a stock market statement, said its agreement for the 'Aoka Mizu' floating production storage and offloading vessel is now effective and the vessel is now on tow to Dubai for necessary upgrade work.
A rig contract has, meanwhile, been signed with Transocean which will complete the already drilled wells for production in the EPS. At the same time, fabrication orders placed with TechnipFMC for SURF and SPS.
Regulatory approval for development and production is expected shortly, the company added.
Hurricane highlighted that it is fully funded to reach ‘first oil’ thanks to the funding arrangements that were put in place in the summer.
"I am delighted that all operational work streams are proceeding on track for delivery of the project within the target timeline of first oil in 1H 2019,” said Dr Robert Trice, Hurricane chief executive.
He added: “The Lancaster EPS is not only an essential step in planning for the full field development of the company's Rona Ridge assets, but also represents a substantial development in its own right, with planned production of 17,000 barrels of oil per day.
"We look forward to providing further updates as we move forward with engineering, procurement, installation and commissioning (EPIC) activities; and once regulatory approval is obtained."