http://www.upstreamonline.com/incoming/article232958.eceLegendre...

http://www.upstreamonline.com/incoming/article232958.ece

Legendre nears end of 'economic life'

US independent Apache plans to decommission the shallow-water Legendre oilfield off Western Australia next year as production at the field continues to decline.

Josh Lewis 19 October 2010 07:02 GMT

An Apache spokesperson told Upstream the company could commence decommissioning of the field as early as the first quarter of next year.

?We?re forcasting the end of its economic life in 2011, possibly quarter one,? he said.

?Once the economic life has been reached that would be the trigger point to commence the decommissioning program.?

The decommissioning process will include the removal of field infrastructure including Oceaneering?s jack-up production unit Ocean Legend and the Teekay-owned Karratha Spirit floating storage and offloading vessel.

In July Oceaneering hinted at the closure of Legendre, saying it was already looking at either redeployment or the possible sale of the Ocean Legend when operations wound up.

The Legendre field lies in 60 metres of water in Block WA-20-L. Production at the field commenced in 2001 and peaked at 45,000 barrels per day.

However production has been steadily declining over recent years and Apache said the field was now only producing about 2500 bpd.

Apache increased its stake in the field in 2007 when it bought Woodside Petroleum?s majority 45% interest, in a deal worth $65 million to Woodside.

At the time, Woodside chief executive Don Voelte said that Legendre was in decline and the company had decided it was more economical to sell the asset than continue production at higher operating costs.

The sale took Apache?s stake in the field up to 77.4% with Australian independent Santos holding the remaining 22.6%.