ASX-listed Hartshead Resources has submitted a program and budget for the development of a revised gas export route from its production license on the United Kingdom Continental Shelf (UKCS), seeking approval from its partners in the P2607 joint venture (JV). The updated plan aims to optimize project economics by reducing capital expenditure while accelerating production volumes and timelines.

The revised proposal outlines a plan to transport gas from the Anning and Somerville fields—part of the P2607 production license—through the Saturn Banks pipeline system, which is owned and operated by CalEnergy Resources. From there, the gas would be transported to the Perenco-operated Bacton Terminal, where it would undergo processing before being introduced into the UK’s national grid. Hartshead believes this revised export route offers substantial advantages compared to previous plans and aligns with the company’s strategic goals for the project.

Hartshead asserts that the new plan will lower anticipated CAPEX and provide a more efficient and cost-effective transportation route. These improvements could contribute to the project's overall financial viability, ensuring better returns and operational efficiency. The company has emphasized that securing approval for this revision is a critical step in advancing the field development. The joint venture partners now have 90 days to review the proposal, assess its financial and operational implications, and vote on whether to proceed with the revised plan.

The P2607 production license comprises five blocks, which include four previously discovered gas fields and several exploration prospects. Based on resource estimates provided by Hartshead, these fields contain a combined resource base of approximately 0.8 trillion cubic feet (Tcf) of gas, forming the foundation for a phased development strategy. The company envisions a three-phase approach to developing the fields, with the revised export route playing a crucial role in maximizing gas recovery and streamlining operations.

Hartshead currently holds a 40% interest in the P2607 license, while Viaro Energy’s RockRose, following a farm-in agreement completed in 2023, owns the remaining 60%. The approval of the new export route would mark a significant milestone in the joint venture’s efforts to bring the project into full-scale production.

Despite submitting the revised plan to the North Sea Transition Authority (NSTA) last week, Hartshead acknowledges that its joint venture partners did not initially support the submission. However, the company remains firm in its position that the new route presents "significant advantages" over the originally proposed option. Hartshead continues to advocate for the revised plan, emphasizing its benefits in terms of cost reduction, efficiency, and overall project economics.

If approved, the revised export strategy could not only enhance the profitability of the Anning and Somerville fields but also contribute to strengthening the UK’s domestic energy supply. The decision by JV partners in the coming months will be pivotal in shaping the future of the P2607 development and determining the project’s long-term impact on the North Sea’s gas production landscape.