Mechanical Issues Shut Production from Breagh Field (UK)

Sterling Resources Ltd. announces that the operator of the Breagh gas field, RWE Dea, has advised that production has been temporarily shut-in in order to resolve a number of mechanical issues.

The mechanical issues requiring repair have occurred subsequent to field start at the inlet area of the Teesside Gas Processing Plant (TGPP). These issues were experienced during routine pigging operations to sweep the pipeline of liquids. During these operations indications of abnormal conditions were received which caused the facilities to shut in automatically. Investigations conducted after the shut in have indicated some irregularities with equipment, which require intrusive work to rectify.

Remaining investigative work and known repair work are estimated to take a period of two weeks before the plant can be restarted.

“Clearly we are very disappointed with this turn of events at Breagh, as it further delays production from the field,” said John Rapach, Sterling’s Chief Operating Officer. “We are still at an early stage in the investigation and will inform the market when a clearer picture of the extent of necessary repairs emerges. We will continue to work closely with the operator RWE Dea in order to resolve the issues and resume production as quickly as possible,” added Mr. Rapach.

The Breagh field is located in UKCS blocks 42/12a and 42/13a of the Southern North Sea in 62 metres water depth, approximately 100 kilometres east of Teesside. Gas is exported via a 20-inch pipeline from the Breagh Alpha platform to Coatham Sands, Redcar on the UK mainland, and then via an 11 kilometre buried onshore pipeline to the TGPP at Seal Sands for processing. The TGPP site is owned by North Sea Midstream Partners and after processing at the TGPP, the gas enters the UK National Transmission System. During 2009, RWE Dea UK acquired its current 70 percent interest in the Breagh gas field and became operator, with Sterling retaining the remaining 30 percent.

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Press Release, November 13, 2013