Drilling of North Eigg exploration well hit by delay of six weeks

Drilling operations on the North Eigg exploration well have been hit by delays, Serica Energy has confirmed.

A recent equipment mishap has forced the North Sea operator to temporarily halt work, pushing back the project timeline by around six weeks.

Drilling on North Eigg – which could hold prospective resources of 60 million barrels of oil equivalent – kicked off in July using the Transocean Paul B Loyd Jr harsh environment semisubmersible rig.

In recent weeks operations had been progressing successfully, Serica said, despite some drilling delays in the tophole sections.

But during preparations to spud the third section of the northern North Sea well, a vital piece of rig equipment failed during a routine test.

A replacement has been sourced and planning is under way to transport this to the drilling rig.

The oil and gas company insists this will have “no impact on the ultimate geological outcome of the well”. It is expected all outlays incurred will benefit from investment allowances available under the recently introduced energy profits levy.

The net well cost for the company, after tax, is anticipated to increase by around £3 million as a result of the delays.

It is now anticipated results from the well will be available in December, rather than mid-October as originally planned.

Serica chief executive Mitch Flegg said: “This high-impact exploration well is the latest in a series of capital investment projects undertaken by Serica with the objective of increasing our production in an environmentally sensitive manner.”

Mitch Flegg.