Jersey Oil & Gas (JOG) and NEO, as the incoming operator of the Greater Buchan Area (GBA) licence, have decided to use a floating production, storage and offtake vessel (FPSO). This is not only the cheapest option but it also gives the lowest full-cycle carbon footprint, JOG said in a stock-exchange statement July 4.
It may be hooked up to one of the floating wind power developments that will be near the GBA and the key commercial terms for its use have been agreed. All in, the cost of developing Buchan will be around $900mn.
“The preferred development solution aligns with the North Sea Transition Authority (NSTA)’s obligations to maximise the economic recovery of reserves and assist with achieving the UK government’s net zero target,” JOG said. The same day it said the NSTA had approved a three-year extension to the second term of the P2170 “Verbier” licence, whose development will be part of the GBA.