Korean-owned Dana Petroleum entered the detailed engineering design phase on its US $1.5 billion Western Isles development project in the UK North Sea and will utilize Sevan Marine’s innovative circular FPSO design.

The 100 MMboe Western Isles project will develop the Harris and Barra oil fields in the northern North Sea, 160 km (99 miles) east of the Shetland Islands and 12 km (7 miles) west of the Tern field. Recoverable reserves are put at 45 MMboe. The 9-well development is expected to add more than 26,000 boe/d to Dana’s production.

Paul Griffin, Dana’s UK managing director, said: “Western Isles is a very important project for Dana and a key part of our strategy to double daily production to more than 100,000 boe by 2016. Work on the detailed engineering design will begin immediately and the project is expected to receive full approval from the UK government towards the end of 2012, with first oil production expected in 2015.”

The Harris and Barra fields are estimated to contain recoverable oil reserves of 45 MMbbl, with upside potential in the area, according to Dana.

The Western Isles development project is a joint venture between Dana with an operating equity share of 65%, and Japanese upstream E&P company Cieco, which holds the remaining 35%. The two companies will own the FPSO unit, which will be built at China’s COSCO yard and eventually be located in a water depth of 165 m (541 ft).

In more detail, the project will involve the subsea development of at least five production and four water injection wells plus two exploration wells tied back via two 8-slot production manifolds to the newbuild Sevan marine-design FPSO, with oil export using shuttle tankers. Drilling is expected to begin next year with subsea installation in the summer of 2014 and the installation of the FPSO in the summer of 2015.

Plateau production is expected to be around 40,000 boe/d in total (26,000 boe/d net to Dana). First oil is expected in 2015 and the estimated field life is 15 years.

Contractor Sevan marine said that, following more than a year of FEED work, its technology would be used for the Western Isles development project. Sevan and Dana have negotiated two agreements, one Technology License Agreement whereby Dana pays a license fee to Sevan for the right to use the proprietary Sevan Technology, and one Service Agreement under which Sevan will provide technical and administrative resources to Dana during the project.