Hydro inks deal for UK heavy oil exploration

Hydro has reached an agreement with Silverstone Energy Limited and Wilderness Energy UK Limited for close cooperation on the licenses P-1207, P-1282 and P-1496 in Quadrant 9 on the UK continental shelf.

According to the agreement, Hydro will fund further exploration program in exchange for up to 50 % equity in these licenses, as well as having the option to take over the operatorship. A discovery of heavy oil was made in 1991, but further appraisal of the prospect is necessary to evaluate the commerciality.

If viable reserves are confirmed, these licenses close to the Mariner and Bressay fields, recently acquired from Chevron, could become part of a development plan for the area. Hydro’s experience from the heavy oil fields Grane in the North Sea and Peregrino offshore Brazil will be valuable in search of viable solutions for a development plan.