Endeavour holds a 25% interest in the field, which is expected to begin producing in the second half of 2012.
Under the agreement, BG International will carry out front end engineering and design (FEED) work for a Bridge Linked Platform (BLP) that will connect Columbus production to the Lomond field and provide gas and condensate reception facilities.
The cost of the FEED and BLP will be shared between the license holders of the Columbus field and adjacent interest owners in Block 23/21, where the field has been shown to extend.
Separately, it has been agreed that the cost of Columbus subsea facilities will be shared between the license holders of both blocks, with a new Columbus field development plan (FDP) to be submitted to the UK Department for Energy and Climate Change.
Work on the FEED is already underway and is expected to be completed in the third quarter of 2010, concurrent with FDP preparation and submission. Negotiations to agree on the terms of use for the Lomond platform as a processing host and export point for Columbus produced fluids are at an advanced stage. Project sanction is scheduled for the end of 2010.
William Transier, chairman, president and CEO of Endeavour, said: “Access to production infrastructure remains an ongoing issue for many independent operators in the UK North Sea; however, this agreement is an indication of the progress that can be achieved towards the monetization of assets.”
The Columbus field was discovered in 2006 and subsequently appraised in 2007 through the drilling of two additional wells. Partners in the field include the operator, Serica Energy (UK), with a 50% interest and EOG Resources UK, which holds a 25% interest.
