As a result, Incremental said it had reduced the length of infield piping at the project from 75km to about 21km by gathering nearby wells into a common line and then running one pipeline to the central station.

When the junior acquired the oil field in October 2005, each of the 23 producing wells had an individual flowline from the wellhead to the gathering centre.

Most of this pipe was threaded for easy repair and was laid directly on the ground, resulting in numerous small leaks of oil and produced fluids.

“Virtually all in-field piping is now welded and most pipes are supported on brackets above corrosive soil areas,” Incremental said.

“As a result of these moves, leaks have been reduced to zero in recent weeks, even at the height of the vicious winter experienced at Selmo.

“Additionally, production interruptions associated with cold weather have been minimal this year, mainly due to the new piping system.”

Last year and in 2006, Incremental was forced to shut-in Selmo oil production due to freezing temperatures and snow.

Another bonus of the new amalgamated piping system is that each well now has a continuous flow meter – the flow of each well is measured at the infield gathering station and transmitted back to the central facility.

As a result, any breakdown or gradual deterioration of pump performance can be detected more quickly and then remedied.

“The successful completion of this project will allow Incremental to operate the field to an industry best-in-class environmental manner, and will significantly reduce maintenance and manpower costs for many years in the future,” the company said.