Viaro Acquires Full Ownership of License West of Shetland

Independent British energy firm Viaro Energy has acquired 100 percent interest in license P.2593 in the West of Shetland through its wholly owned subsidiary, RockRose Energy.

License P.2593 is “an important addition” to Viaro’s portfolio and is strategically close to RockRose-owned existing producing assets and infrastructure, the company said in a recent news release. The license includes the Tuck discovery, a Cretaceous gas-bearing reservoir, trapped on the North West flank of the Rona Ridge. The discovery is supported by an amplitude anomaly, which indicates thicker and better-quality reservoir sands, up dip and along strike from the discovery well, according to the release.

Further, Viaro said the license area holds several other prospects and leads, including the Boulmer prospect, a “drill-ready” Devonian structure with up to 2,625 feet (800 meters) of Lower Clair sediments.

The company said it is evaluating existing plans and “the most advantageous opportunities” in the license to progress to the next phase.

“The West of Shetland continues to be a strategic hub for exploration opportunities, and the Tuck discovery could hold considerable resources”, Viaro CEO Francesco Mazzagatti said. “The license’s proximity to our existing assets in the Greater Laggan Area offers important potential for extending the life of the infrastructure, including the Shetland Gas Plant. The work program will also focus on exploring electrification and other technological innovations to reduce emissions in the area”.

In December 2023, RockRose signed an agreement with EnQuest to acquire a 15 percent interest in the Bressay field and its EnQuest Producer FPSO for a total consideration of $58.26 million (GBP 46 million).

The early production facility development under review has capital expenditure estimated at $759.89 million (GBP 600 million), with $113.98 million (GBP 90 million) being RockRose’s net share, Viaro said in a separate news release.

Bressay is considered one of the largest undeveloped oil fields in the United Kingdom Continental Shelf (UKCS) with more than 115 million barrels of net 2C reserves and with an estimated potential to extract around 200 million barrels of oil equivalent. Discovered in 1978, Bressay lies in UKCS Blocks 3/28a, 3/27b, 3/28b, 9/2a, and 9/3a of the Northern North Sea, east of the Shetland Islands, according to the release.

Pending regulatory approval of the transaction, operator EnQuest will hold the remaining 85 percent stake in the field. Viaro said its partnership with EnQuest paves the way for a field development plan (FDP) to be advanced in line with EnQuest’s ongoing plans.

The Bressay acquisition marks Viaro’s entry into the Northern North Sea, along with significant operations in the surrounding Central North Sea, Southern Gas Basin and the West of Shetland, the company noted.

“We are grateful to the team at EnQuest for the smooth negotiation process on the Bressay acquisition”, Mazzagatti said. “Long considered one of the largest developments on the UK Continental Shelf, Bressay is an essential component of the country’s effort to secure viable energy sources in the long term. Apart from its significant potential to contribute to the UK’s energy security, ensuring the development of Bressay is crucial in order to encourage more investments in the UKCS, where we hope the tax regime will soon stabilize”.

“It is an important addition to our portfolio, as it not only confirms our serious commitment to support the development of North Sea assets to their fullest potential, but also fits into our strategy to continuously reinvest into new assets and development opportunities. Considering EnQuest’s successful track record with the surrounding developments in the area, we are confident they are the right partner to ensure that the extraction will be aligned with the highest industry standards”, he added.

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