ENGIE E&P UK Limited Announces First Gas from Cygnus Field

ENGIE E&P UK Limited announced that first gas from the Cygnus development has been exported to the Bacton gas terminal in North Norfolk.

Cygnus, located in license areas P1055 & P1731, 150 kilometers off the coast of Lincolnshire, is expected to contribute 5% of UK gas production – supplying sufficient gas to heat the equivalent of 1.5 million UK homes. The project added approximately £1.3 billion to the UK economy and supported nearly 5,000 jobs during its five year development period.

Ruud Zoon, Managing Director of ENGIE E&P UK Limited, commented, "I’m very proud of the strong collaboration on Cygnus between partners ENGIE E&P, Centrica and Bayerngas. Together we have successfully achieved first gas production and export from the Cygnus field. Over 5000 colleagues, contractors and suppliers have contributed to this landmark development and, most importantly, have maintained an excellent safety record since the project was approved in 2012."

"First gas from Cygnus represents a significant boost to the UK’s long term energy security, with an estimated production life exceeding 20 years. Furthermore, with over 80% of the contract work secured by British businesses – including fabrication yards in Hartlepool, Methil and Burntisland – it is a showcase for the technical and commercial excellence of the UK oil and gas supply chain."

The Cygnus complex, with four platforms, a total of 10 wells and two subsea structures, serves an estimated field size of 250 square kilometers from which it is expected to achieve plateau production of 250 million cubic feet per day.

Bayerngas UK Managing Director, Gerry Harrison, added, "ENGIE E&P, Centrica and Bayerngas have worked closely together on this project since 2010. As you will hear from the partnership, most of the numbers related to this project are very large, for instance: investment, man hours, production levels, reserves, longevity. But perhaps the most important numbers are very small; our priority has always been safety and I am proud that Bayerngas has collaborated on a project with minimal Lost Time Incidents. We are looking forward to high levels of stable production and thank all those involved in Cygnus for their hard work and dedication."

Chris Cox, Managing Director of Centrica’s Exploration & Production business, continued: "The Cygnus field is hugely important to the country’s energy supply, so we are proud that gas is now flowing from the field and into homes and businesses across the UK. This milestone was only possible thanks to the hard work and collaboration of the teams across Centrica, ENGIE E&P, Bayerngas and our supply chain partners."

The partners are evaluating further opportunities in the Greater Cygnus area with the aim of bringing additional volumes through Cygnus when capacity becomes available.

Andy Samuel, Chief Executive of the Oil & Gas Authority, concluded, "ENGIE E&P, Centrica and Bayerngas have demonstrated an impressive collaborative effort in achieving first production from Cygnus. It represents a significant milestone for the Southern North Sea, delivering new volumes through existing infrastructure, utilizing the UK’s skilled supply chain and helping create the right conditions for further developments. This is set to continue with the next phase of development from Cygnus Bravo which will bring additional capacity on stream in the future to deliver MER1 UK."

Equity interests are operator ENGIE E&P UK Limited (38.75%) and partners Centrica (48.75%) and Bayerngas (12.5%).

For more information, visit www.engie-ep.co.uk.