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The Leadon development solution was chosen, the field developed and first oil produced in just under 20 months from proving the field commercial.

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Kerr-McGee’s FPSO Global Producer III, built by Mitsui Engineering & Shipbuilding in Tokyo, Japan and equipped at the Swan Hunter yard on Tyneside, UK.
Based in Aberdeen, Peter Addy (right) has headed development of Kerr-McGee’s Leadon oil field, while Brian Elliot has been the company’s engineering manager.
The Leadon field is on the UK continental shelf. The British authorities havestipulated stringent safety requirements with which operators have to comply. Following the highly publicised Lord Cullen enquiry, the UK Government in the early 1990s introduced non-prescriptive, goal-setting legislation with the aim of improving safety for offshore personnel. Not only has Kerr-McGee developed the field in compliance with these requirements, but the company has succeded in doing it on budget and on time.

The safety case regulations were introduced in 1992. They were followed three years later by an amendment specifically for fire, escape, rescue and explosion, then in 1996 by the design and construction amendments.

Kerr-McGee made sure that the facilities solutions for the development would meet the high standards of safety required for the North Sea. Good safety engineering does not have to be expensive, says Peter Addy, Kerr-McGees Leadon development manager.

Addy adds, We were determined to do it right first time with the realisation that by taking a comprehensive approach to safety engineering up front we could meet or exceed the legislative requirements within the project timescale.

1,500 verification reports
Between commencing fitting topsides to the FPSO Global Producer III and the field beginning to produce oil last autumn, DNV completed a total of 1,500 verification reports. This is one of the first occasions that a development has been carried out in accordance with a full verification scheme. Development of the Leadon field has been a challenge for DNV, during which it has been effectively a member of a joint engineering, construction and production team.

DNV project manager Steve Gallon explains, We had to move into KerrMcGees organisation to carry out the significant scope of work at the pace required to keep track with the project. This involved integrating into the project engineering organisation, including taking on KMG e-mail addresses and dedicated desk spaces. The document submission, reply and re-submission loop was eliminated thanks to dialogue and resolution of issues up front; Kerr-McGee drove and encouraged this approach and it worked well.

Brian Elliot, Kerr-McGee engineering manager, adds, We quickly realised the value of integrating DNV into the engineering team. This real-time environment removed unnecessary interfaces and gave a clear understanding of the project performance standards between Kerr-McGee as dutyholder, and DNV, as independent competent person. The schedule could not have been achieved without good co-operation between the project team and DNV.

Adds Gallon, Both offshore and at site, Kerr-McGee allowed DNV the access and resources essential to carry out the verification process and deliver our reports on time. This provided a high level of confidence at having met the systems performance standards at first oil.

Kerr-McGee pioneered the use of a permanently moored FPSO during 1992 and 1993 in an ambitious plan for the Gryphon field one of the Leadon fields neighbours.

The experience gained from Gryphon has been applied to the Leadon field.
We looked carefully at the lessons and good practices learned from Gryphon and other more recent projects, then fed them into the Leadon project, Addy concludes, and this contributed greatly to our ability to develop the field against a tight schedule.

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Kerr McGee in brief

" Kerr-McGee Corporation is an Oklahoma City-based company with assets of US$11 billion. The company is engaged in two worldwide businesses: oil and gas exploration and production and the production and marketing of titanium dioxide pigment.

" With proved reserves of more than 1.5 billion barrels of oil equivalent, Kerr-McGee ranks among the largest US-based independent exploration and production companies.

" The company explores for oil and gas in selected basins around the world, and has producing fields in the Gulf of Mexico, the UK sector of the North Sea, the South China Sea, and onshore in the US, Ecuador, Indonesia and Kazakhstan.

" Founded in 1929, Kerr-McGee also has titanium dioxide pigment operations in the US, Germany, the Netherlands and Australia that supply pigment to customers in more than 100 countries. The company is the third-largest global producer and marketer of titanium dioxide pigment.


Leadon field in brief:
" The first well on the Leadon field located 220 miles north-east of Aberdeen, Scotland was drilled by the British National Oil Corporation in 1979. At that time, it was regarded as a small and uneconomic accumulation.

" In 1998 Kerr-McGee acquired Gulf Canada Resources North Sea assets, including the Leadon field, and subsequently established further proven reserves. The development plan was approved in September 2000. Leadon is 100% owned and operated by Kerr-McGee.

" First oil was produced in November 2001. Reserves in the Greater Leadon area are estimated to be in the range of 120170 million barrels of oil equivalent.

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