Orcadian Energy (“Orcadian”) the licence holder of the Pilot Oil Field (“Pilot”) on the UKCS, has been working with offshore engineering specialist, Crondall Energy (“Crondall”), to investigate ways to reduce the greenhouse gas emissions (“GHG”) expected as part of Pilot’s future development.
The Oil and Gas Authority (“OGA”) has indicated that new UK oil and gas developments will need to demonstrate significant reductions in GHG emissions when compared to current overall basin level emissions and has targeted a 50% reduction across the basin by 2030 and a 90% reduction by 2040.
Orcadian plans to use polymer flooding to develop Pilot, which should deliver a substantial step towards the reduction of GHG emissions when compared to other analogous heavy oil fields or UK sector average emissions. However, Orcadian wanted to explore what further reductions would be required in order to meet the longer-term objectives of the OGA. Orcadian engaged Crondall to first benchmark GHG emissions using Crondall's in-house GHG assessment tool, and then to investigate ways to further reduce the Scope 1 Carbon Dioxide (direct emissions) and Scope 2 Carbon Dioxide (from imported electrical power) emissions from the Pilot development concept, by making changes to the proposed processing and utility systems.
By implementing a number of interrelated initiatives around process heat management and power generation, Crondall were able to identify the opportunity to reduce GHG emissions by close to 50% when compared to the original field development concept – by utilising existing, field proven technology. Furthermore, Crondall were able to identify a road-map of future technology and electrification opportunities that could, during the lifetime of the asset, deliver the reductions in GHG required by 2040.
Crondall and Orcadian intend to submit to the OGA, an addendum to the Concept Select Report which incorporates the reduction of GHG emissions into the selected concept for the Field Development Plan.
Steve Brown CEO of Orcadian commented:
“We believe the opportunities to reduce emissions at Pilot in the future are very significant. The ability of the Crondall team to integrate their processes and electrical engineering capabilities was the key to the optimisation of our initial concept. Minimising emissions is not as simple as wiring up to the grid and dispensing with onboard generation, it is important to quantify all the emissions caused by the process of extracting oil and Crondall’s technology helps us do that very well. The work that the Crondall team has done, has given us real insights into how we can fully support the OGA’s drive to electrify the CNS, deliver on the OGA’s commitment to a Net Zero basin and still maximise economic recovery from our licences.”
Duncan Peace, Group Managing Director of Crondall Energy Ltd., said:
“We are 100% committed to supporting our clients through the challenges of the energy transition and helping them to meet or exceed the targets set by the OGA and are delighted to be supporting Orcadian with this initiative.
Energy transition will need time to achieve the goal of net zero, but a change in attitude and perspective is required now. By looking at the way we design and configure our facilities through the lens of GHG reductions, we can achieve significant reductions from day 1. We can also future proof the next generation of oil and gas developments by pre-investing to allow the import of electrical power and retrofitting carbon capture technologies, so that we can remain on the path to net zero.”