FT.com - Cuadrilla shakes up team ahead of drilling

FT.com - Cuadrilla shakes up team ahead of drilling By Michael Kavanagh

Cuadrilla Resources, the first company to start exploratory fracking for shale gas in the UK, has replaced its chief executive as it prepares to resume drilling in Lancashire.

Francis Egan, a leading executive at BHP Billiton’s oil and gas division, takes over control of Cuadrilla next month. He will replace Mark Miller, Cuadrilla’s current chief executive, who is to stay as director of the company’s Bowland shale programme between Blackpool and Preston.

The announcement comes a day after Cuadrilla said it would be tightening its policy on conducting underground explosions as it seeks to validate estimates of large gas reserves in the shale deposit and avoid widespread public opposition to fracking.

Cuadrilla was given the go-ahead to resume fracking in the area in April even though the technique was blamed for two earthquakes near Blackpool last year. It voluntarily suspended fracking last June.

A report commissioned for the Department of Energy and Climate Change recommended the company adopt more cautious operating procedures and more robust seismic monitoring to help prevent further tremors. A final decision from DECC to approve a resumption in fracking is expected soon following a 60-day consultation period.

Surveying for shale gas has continued and last month the company issued an apology to residents who had been “surprised by the brief thuds” resulting from detonations.

Mr Miller said on Thursday that the policy on detonations would face further restrictions. After consultations with residents and Mark Menzies, the local MP, Mr Miller confirmed that the minimum distance between detonations and homes would be increased from 250m to 500m where possible in the built-up areas of Lytham, Wrea Green, Kirkham and Wesham. Detonations have been restricted to between 9am and 6.30pm.

Mr Miller’s decision to remain with the company after leading it “through a critical period” was welcomed by Lord Browne, chairman of Cuadrilla. Lord Browne, a partner at US private equity group Riverstone, which is a major investor in Cuadrilla, added that Mr Egan’s hiring would strengthen the company’s management team leaving it “well positioned to unlock the potential of shale gas and set the very highest standards of safety”. Mr Egan said: “My first priority will be to ensure Cuadrilla continues to listen to and work with our local communities in Lancashire.”