17 Jun 2020 10:39

Gazprom, Wintershall Dea shuttering offshore Winchelsea project in UK due to unprofitability

MOSCOW. June 17 (Interfax) - Gazprom and Germany's Wintershall Dea are shutting down the Winchelsea project on the UK's continental shelf, the Russian gas giant said.

Wintershall Noordzee B.V., a 50-50 joint venture between Wintershall Dea and Gazprom EP International that is the project operator, began exploration at the offshore licensed areas P1902 (block 44/23c) and P1903 (blocks 44/23d and 44/24c) in the UK in 2012.

Two exploration wells were drilled, 44/23g-14 (Winchelsea-1) and 44/23g-15 (Winchelsea-2) and the eponymous field was discovered.

The project, which is being carried out under a joint venture agreement, is 20% financed by Gazprom, 49.5% by Wintershall Noordzee, 15.5% by XTO UK and 15% by Gas Union.

Due to project efficiency indicators not having been achieved, the project participants decided to halt the development of the project and return the licenses," the Russian partner said in the latest issue of the Gazprom in Figures bulletin. Last year, Gazprom talked about assessing the possibility of developing the western block of the field (under license P1902) and identifying possible synergies with the use of the infrastructure of other projects.

Gazprom also issued an update on another project with Wintershall Noordzee, at the offshore Wingate field in the UK (licensed areas P1239 and P1733). "The field is scheduled for closure in 2026," the Russian gas giant said in the latest issue of the publication.

Gazprom holds a 20% stake in this project, Wintershall Noordzee holds 64.5% and XTO UK holds 15.5%. The field has annual design capacity of 300 million cubic meters.