With investments of up to £140 million, drilling the fourth production well at Chestnut will kick-off before the end of 2019. This follows a similar investment in 2017 when a third well was added to the field.
The contract for the Floating Production, Storage and Offloading (FPSO) vessel at Chestnut, Teekay Hummingbird Spirit, has also been extended by up to three years to 2023.
Chestnut was initially expected to produce 7 MMboe in just over two years, but thanks to additional investment from Spirit and Dana, it has since produced more than 24 MMboe.
The Chestnut field is located in block 22/2a and operated by Spirit Energy. Five (5) development wells (3 producers and 2 injectors) have been drilled and completed, all subsea and produce to the Teekay Hummingbird FPSO.
Three (3) producers and one (1) injector are presently online, new well (22/2a-18) was brought on stream at the end of 2017. Field production started in 2000 with one horizontal well under an extended well test (EWT) programme but was shut-in pending further field development which was achieved in 2007. The reservoir is mechanically weak therefore completions have been designed to control and manage solids production downhole.
The field produces from an Eocene sandstone injectite reservoir, the Alba sand, a high permeability reservoir with very low mechanical integrity (original porosity 27%, permeability varying from 0.8–2.0 Darcy).