press release



LONDON, Mar. 25, 1998 -- Texaco North Sea UK Company (Texaco) announced that its Galley oil and gas field, in Block 15/23a of the UK North Sea, achieved first production today. The news comes just 12 months after the Department of Trade and Industry (DTI) gave the go-ahead for the field's development.

Peak production from phase one of the two-phase development will be 43,000 barrels of oil equivalent per day.

Texaco Ltd Managing Director, Production, John McDonald, said of the milestone: "To take Galley from sanction to production in such a short period of time clearly demonstrates the benefit of the flexible approach Texaco, its partners, and the major contractors brought to this project. The field will be a further boost to Texaco's North Sea production levels, following first production last year from two other Texaco-operated fields, Captain and Erskine."

Randall Kubota, Galley project manager, pointed to two changes which contributed to the project's success: "The first was the advance in facilities technology, and the second was a new flexibility about the way we do business. Ultimately the thing that made the difference was the hard work and creativity of the project team, using resources from London and Aberdeen."

Galley phase one, which has an expected field life of four years, will see the development of the field's North and South accumulations using Seatankers' Northern Producer floating production facility (FPF). Produced oil and gas are being exported by pipeline to Texaco's nearby Tartan A platform. From there, oil is piped to the Flotta Terminal and gas to the St Fergus Terminal.

Texaco is currently seeking partner and DTI approval to begin development work on phase two, which will eventually add a further 15,000 barrels per day to Galley production.


Key Statistics

Block: 15/23a (145km east-north-east of Peterhead)
Licence Number: P324
Operator: Texaco North Sea UK Company
Partners: Texaco North Sea UK Company -- 67.41%
Summit Oil UK Ltd -- 17.42%
Lasmo (TNS) Limited -- 15.12%
Discovered: 1974
Number of exploration/appraisal wells: 12
Estimated reserves in place: 57.5mmbls/80.4BCF
Estimated recoverable reserves: 28mmbls/40.2BCF
Peak production: 35,000bopd/50.74mmscf/day (43,000boe/day)
Export route: Pipeline, following two-stage separation process. Oil to Flotta Terminal via Tartan A, gas to St Fergus Frigg processing plant, also via Tartan A.
API gravity: 44
Water depth: 150 metres
Geology: Upper Jurassic age sandstone
Reservoir depth: c. 13,000 feet
Type of installation: Subsea wellhead system connected to floating production facility (FPF) by pipelines
Development wells: Two: one in Galley North, one in Galley South. Both wells will be equipped with down-hole pressure gauges to measure dynamic performance of the reservoirs. Water injection facilities will be part of the FPF topsides specification.
Floating Production Facility: Processing capacity: 55,000 bbls/day

8"NB infield flowlines and 6"ID flexible production risers
FPF-Tartan: Oil export by 10.75"OD pipeline. Gas export by 8.625" OD pipeline
Major Galley contractors:
Sea Production Owners of The Northern Producer FPF
Atlantic Floating Production FPF operator (sub-contractor to Sea Production)
Coflexip Stena Offshore/Allseas UK Ltd Installation of sub-sea equipment and pipelines

Updated: March 1998