ASX-listed Hartshead Resources NL has entered into an agreement with Shell UK Exploration and Production Limited (Shell), to undertake an engineering study for tie-in of Hartshead’s Phase I gas field development to Shell’s infrastructure.
The agreement will provide a basis of design and cost estimate for the tie-in of facilities through Shell’s infrastructure detailing the required brownfield modifications as part of the gas offtake route for the Anning and Somerville gas fields.
The study work will be undertaken by Petrofac and managed by Hartshead.
Shell will provide project assurance, prior to entering the next phase of engineering work, which is the Front-end Engineering and Design (FEED), prior to final Field Development Plan (FDP) submission to the UK government.
The engineering study with Shell will define Hartshead’s route to transport its natural gas and condensate to the prospective points of sale and is, therefore, a critical component of the future FEED and FDP workstreams.
The company intends to fund the below scope of works, estimated to cost approximately £505,000, from existing cash reserves.
The scope of works with Shell encompasses:
- Provide guidance in relation to the deliverables.
- Ensure output and results of Petrofac Scope of Work fully complies with the Shell select phase for the feasibility study.
The scope of works with Petrofac encompasses:
- 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.
- Control room integration of communications and all reporting systems with the new platforms.
The study is expected to take a total of 3 months and upon completion the agreement will end.