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Gas industry

Texaco Signs Agreement with PEDCO for Captain Field Acquisition

Strategic Insights

— 1 min read

Texaco Limited has reached an agreement in principle with the Korea Petroleum Development Corporation (PEDCO) to acquire a 15-percent minority interest in the Captain Field, a North Sea oil field, for approximately $210 million. The formation of this strategic alliance with PEDCO will provide Texaco with an important business relationship and access to market opportunities in the Far East and other potential project developments. The Captain Field is expected to begin production in the fourth quarter of 1996, with a planned initial production rate of 60,000 barrels of oil per day and recoverable reserves in excess of 300 million barrels.

Key Takeaways:

  • Texaco will retain operation of the Captain Field, with PEDCO holding a 15-percent minority interest.
  • The acquisition is expected to be completed in the first quarter of 1996, with a total value of approximately $210 million.
  • The Captain Field is estimated to have recoverable reserves in excess of 300 million barrels and is scheduled to begin production in the fourth quarter of 1996.
  • Initial production from the field is planned at a rate of 60,000 barrels of oil per day.
  • The field lies in Block 13/22a, approximately 90 miles northeast of Aberdeen, Scotland, at a water depth of 350 feet.
  • The development of the field will involve a well head protection platform connected to a floating production, storage, and off-loading vessel (FPSO).
  • Texaco will use extensive horizontal drilling, with sections up to 6,000 feet, to maximize extraction from the reservoir.
  • PEDCO assumes a 15-percent obligation for the financing of a portion of the expenditures for the Captain project.

Statistics:

  • The acquisition value is approximately $210 million.
  • The Captain Field has estimated recoverable reserves in excess of 300 million barrels.
  • Initial production is planned to be 60,000 barrels of oil per day.
  • The first oil from the field is scheduled for the fourth quarter of 1996.
  • The field is located at a water depth of 350 feet.

Sources:

  • [Texaco Limited news release]
  • Gwyneth Hughes, TEXACO INC., 011-44-71-719-4467

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