Company’s ‘significant progress’ in carbon capture recognised

HARBOUR Energy’s “significant progress” in carbon capture and storage has been recognised in its first quarter trading update.

The company is behind the Viking CCS project, linking the depleted reservoirs once served by the Lincolnshire Offshore Gas Gathering System with emission-intensive refining and power generation, as well as import infrastructure, on the South Humber Bank.

It also saw a first full Q1 return for the Tolmount field, 36km off Flamborough Head, with processing handled by Centrica at Easington.

Linda Cook, chief executive, told of the “significant progress on our UK CCS projects with the Harbouroperated Viking and non-operated Acorn projects recognised as best placed to meet the UK Government’s objectives for the Track Two regulatory approval process”.

The company confirmed such Track Two status would “allow negotiation with the Government over the terms of the economic licences to commence and the projects to move to FEED ahead of a potential final investment decision”.

Harbour’s production averaged 202,000 barrels of oil equivalent per day, down from 215,000 in the same period in 2022, split equally between liquids and gas.

“This reflects new wells on-stream, including at Tolmount, J-area and Clair, partially offsetting natural decline,” the company said, adding it was on track to meet full year guidance of 185,000 to 200,000 barrels per day.

Tolmount is 50km off the Yorkshire coast.

Harbour’s production averaged 202,000 barrels of oil equivalent per day, down from 215,000 in the same period in 2022, split equally between liquids and gas.

“This reflects new wells on-stream, including at Tolmount, J-area (off Aberdeen) and Clair (Shetland), partially offsetting natural decline,” the company said, adding it was on track to meet full year guidance of 185,000 to 200,000 barrels per day.

Estimated revenues of $1.1bn (£872m) have been reported, with capital expenditure of $200,000 (£158,000). It anticipates a total spend at the same level of first quarter revenues.

Ms Cook said: “We delivered a strong first quarter. Continuing to invest in our portfolio while actively managing our cost base has enabled us to further deleverage our balance sheet and return additional capital to shareholders. At the same time, we’ve built good momentum in our international development opportunities which have the potential to add materially to our reserves and future production, and in our CCS projects, all of which will lead to future diversification of our business.”

BP has recently bought into the project, described as a leading candidate for Track Two in the government’s March announcement.