From the North Sea (NT): The Cheviot (SEN, 31/21) redevelopment in the UK’s Northern North Sea is back on track with new operator Alpha Petroleum planning to submit a field development plan this autumn.

The project underwent a review after Alpha took over ATP’s UK assets, including the staff, in early 2014. A standard fpso is in the frame now that the Octobuoy semi-submersible with storage espoused under ATP management has been ditched.

Oil prices have fallen, but Alpha tells SEN it is also seeing costs fall, opening the way to project viability. Subsurface work indicates at least 55mmbbl and 3bcm of remaining recoverable reserves.

Under the name of Emerald, the field was originally developed by Midland & Scottish in the 1990's, but abandoned when only some 8% of the oil-in-place had been produced. At 22ºAPI, the oil is relatively heavy. Two satellite discoveries, Peter and Eclat, now renamed Peel and Padon, will be included in the development.

Spirited

Also in the autumn, Alpha aims to seek approval to develop the small Blythe (31/17) gas field in the Southern Basin. A 1967 discovery, Blythe has defeated previous attempts to develop it not least because of its tight reservoir.

A reservoir study performed under ATP has provided greater clarity and Alpha estimates reserves at 1.1bcm and 0.4mmbbl of condensate. It is almost certain to be a subsea development, it says. Blythe lies some 20km south of Perenco’s Lancelot platform and export pipeline to Bacton.

Meanwhile cash-strapped Iona reports that access to capital is becoming more difficult and costly, obliging it to set priorities. Accordingly it has cancelled a deal with Perenco (31/19) which would have seen it take over as sole licensee and operator on the Trent-Tyne gas fields and EAGLES export pipeline while it concentrates on completing the subsea development of the small Orlando (31/19) oil field in the northern North Sea.

Here, by dint of reducing the project management team, it has lopped $13mn off capex, reducing it to $215mn. It is looking for further savings in the run-up to first oil in 2016 when it expects the contracting environment for drilling and subsea installation to ‘soften.’

Its planned $40mn appraisal well on the nearby Ronan and Oran discoveries is on hold while it seeks a partner to take part of its 100% stake and carry its interest.