Parkmead has signed an agreement with Nexen to conduct a detailed engineering study in relation to the potential subsea tieback of the Greater Perth Area project to the Scott platform and associated facilities in the UK Central North Sea.

Parkmead has also taken ownership of the Perth and Dolphin oil fields which lie in the center of Parkmead’s Greater Perth Area (GPA) oil hub project.

In addition, Parkmead has commissioned a new reservoir study with AGR Tracs International in relation to well stimulation, which could lead to increasing oil flow rates and oil reserves recovery from the two fields by analysing the effect of fracture stimulation on the reservoir.

The Scott field lies approximately 10km southeast of Perth and is operated by Nexen. A tieback of the GPA project to the Scott facilities could yield a number of mutually beneficial advantages for both the Scott partnership and Parkmead. Utilisation of this export route has the potential to transform the GPA project commercially and economically, dramatically reducing the capital expenditure required to bring the GPA project onstream and operating costs thereafter.

The study with Nexen will specifically be looking at the detailed engineering of the tieback, including topside modifications and processing at Scott, as well as caisson design work. Subsea 7 and Ingen (a subsidiary of Amec Foster Wheeler) will be providing additional technical expertise during the study.

Tom Cross, Parkmead executive chairman, said: “We are delighted with the significant progress we have achieved with the Greater Perth Area project. By increasing our stake in the Perth and Dolphin oil fields, Parkmead’s oil and gas reserves grow by some 63%.

The study with Nexen will examine one path to potentially unlock the substantial value of the GPA project for the benefit of the UK and Parkmead shareholders, as well as providing further value for the existing infrastructure partners.”