THE start-up of private equity-backed operator Zennor Petroleum’s Finlaggan gas condensate scheme has been pushed by about a year, as a result of Covid-19.
Zennor said the delay, to the fourth quarter of 2021, was due to the deferral of the planned maintenance shutdown for the Britannia platform, in the central North Sea, and Forties Pipeline System.
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The 27 million barrels of oil equivalent gas field is being developed as a two-well subsea tieback to Britannia, operated by Chrysaor.
Zennor provided the update in its full-year accounts, published by Companies House and showing pre-tax profits of £9.8 million in 2019, against losses of £4.2m in 2018.
Revenues lifted to £47m from £34.4m thanks to improved production from the Mungo, Monan and Bacchus fields, in which it holds non-operated stakes.
The accounts, signed off on July 1, also showed Zennor sold its 11% stake in the Dana-Petroleum operated Platypus gas project in the southern North Sea to one of the other partners for a “nominal amount”.
Bought by private-equity fund Kerogen Capital in 2015, Zennor’s main focus is on Finlaggan.
Zennor said the impact of the pandemic had caused a “significant delay” to the project.
Modification work on Britannia was temporarily halted in mid-March, but resumed in June and remain on-going.
It said valve and safety system tie-ins that were scheduled to be conducted during planned maintenance shutdowns for Britannia and the Forties Pipeline System would be key to maintaining the schedule.
Those shutdowns were originally scheduled for June 2020, but were moved to May 2021 due to Covid-19 related disruption.
Most of the key components for Finlaggan had been made and much of the new piping installed on Britannia by the end of 2019.
In the first quarter of 2020, the “east deck” module was installed, in another important milestone.
During the second half of 2020, Zennor plans to complete most of the remaining subsea facilities work by installing the manifold structure on the seabed and linking it up with the pipeline and umbilical.
