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During 2008, we produced 102,700 boe/d before royalties (102,700 after royalties) in the UK, which was approximately 41% of our total production. At December 31, 2008, our UK proved oil and gas reserves of 175 mmboe before royalties (175 after royal-ties) represented about 18% of our total proved oil and gas and Syncrude reserves before royalties (19% after royalties).

Buzzard
Buzzard is the largest discovery in the UK North Sea in over a decade. It was discovered in 2001 and construction of the platforms and facilities was completed in 2006. Production came on stream early 2007 and the project was completed on time and on budget.

The Buzzard field is located about 60 miles northeast of Aberdeen in the Outer Moray Firth, central North Sea, in 317 feet of water. The Buzzard development includes three platforms that can process at least 200,000 bbls/d of oil and 60 mmcf/d of gas. We have drilled 18 development wells and 14 of them are on stream. Development drilling resulted in more well-to-well variability in the concentration of hydrogen sulphide than originally expected. To address this, we are constructing a fourth platform with production sweetening facilities to handle higher levels of hydrogen sulphide. Existing equipment and processes can manage current hydrogen sulphide levels and maintain current production deliverability until the additional equipment is commissioned, which is scheduled for 2010.

Oil from Buzzard is exported via the Forties pipeline to the Grangemouth refinery in Scotland. Gas is exported via the Frigg system to the St. Fergus Gas Terminal in northeast Scotland.

We expect to produce the Buzzard field through 27 production wells and maintain reservoir pressure with an active water-flood program. During 2008, the Buzzard field reached a milestone when it exported 100 million barrels of crude oil. In 2009, we plan to drill four production wells, two water injectors and progress work on the fourth platform. During the third quarter of 2009, we plan to install the jackets for this platform and complete tie-in operations, pending installation of the topsides. This will result in about one month of downtime which coincides with a six week planned slowdown of the Forties pipeline.

Scott/Telford
Scott and Telford are producing fields with additional exploitation opportunities and both tie back to the Scott platform. Scott was discovered in 1987 and began producing in September 1993, while Telford was discovered in 1991 and came on stream in 1996. We have a 41.9% working interest in the Scott platform and field, and a 71.8% working interest in Telford. In 2008, our share of production from these fields was approximately 10,500 boe/d. The production is around 90% oil and produced through subsea wells tied back to the Scott platform. Oil is delivered to the Grangemouth refinery in Scotland via the Forties pipeline, while gas is exported via the SAGE pipeline to the St. Fergus Gas Terminal in north-east Scotland. In recent years, the Scott platform underwent a significant maintenance turnaround and facilities upgrade to improve reliability and extend facility life.

Other
We have interests in two smaller non-operated fields in the UK North Sea. The Farragon field was brought on stream in late 2005. In 2007, the Duart field began producing oil from a single well tied back to the Tartan platform. Our share of production in 2008 from these properties was 3,900 boe/d before royalties (3,900 after royalties).


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Related Links

ICOP Infastructure Access
This document contains infrastructure details and high-level capacity information as described in the Infrastructure Code of Practice.
Buzzard - pdf  (741 kb)
Scott - pdf  (268 kb)

For further information, email Lloyd Hamel.
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