NPD Head: Norway's New Oil Finds May Help Stem Mid-Term Output Fall

- NPD Head: Norway's New Oil Finds May Help Stem Mid-Term Output Fall

Monday, September 12, 2011
Dow Jones Newswires
by Katarina Gustafsson

Two major oil finds this year by Norwegian oil and gas giant Statoil (STO) could stave off a steep decline in Norway's production in the mid-term, but won't reverse the longer downward trend, Bente Nyland, head of the Norwegian Petroleum Directorate has told Dow Jones Newswires.

This summer's find in the North Sea that is one of the 10th biggest discoveries ever on the Norwegian continental shelf and the earlier slightly smaller success in the Barents Sea complement measures to tackle the fall in the short- and mid-term that are being considered and implemented by the Scandinavian country.

However, ultimately Norway will have to open up new areas and that is more problematic.

"In the short- and mid-term it's important to keep and increase recovery, to have new finds in production and build out what you have found. While in the long run, it's necessary to discuss whether to open up new areas. And that is a political question," Nyland said.

Norway this year reached a treaty with Russia over a long disputed maritime border in the Barents Sea. But it could be a while before this new zone is opened up for exploration, Nyland said the quickest scenario would be around two or three years.

The petroleum directorate has started collecting seismic data from the region and Nyland, a geologist and head of the government body since 2008, said some indication of the region's resources could be given in 2012-13.

The state agency, tasked with overseeing Norway's oil and gas activities, predicts total production will be kept at about the current level until around 2020-25, Nyland said.

Norway's oil production peaked in 2001. Gas production is still rising but Nyland said she expects output to begin decreasing some time at the start of the 2020s given the lack of large gas finds.

"Gas production will to some extent fill in the gap in coming years," she said, adding that increasing the recovery rates in existing oil fields will be critical in the short term.

The petroleum sector is Norway's largest industry. Investments next year in oil and gas activities are seen at a record-high NOK172 billion ($32 billion), according to a recent forecast from Statistics Norway.

Last week, the Norwegian krone climbed to an eight-year high as traders sought a new safe haven after the Swiss National Bank capped the value of the Swiss franc against the euro.

"We have no indications that companies have become more restrictive. But it's too early to say," Nyland said.

In January, the Norwegian Petroleum directorate revised down estimates for undiscovered resources on the Norwegian continental shelf, to 2.6 billion standard cubic meters of oil equivalents from 3.3 billion standard cubic meters of oil equivalents.

"This year's finds give no base for changing our analysis," she said.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Norway Oil Fund Head Unruffled by US Downgrade

- Norway Oil Fund Head Unruffled by US Downgrade

Friday, August 12, 2011
Dow Jones Newswires
LONDON
by Polya Lesova

The U.S. credit rating downgrade by Standard & Poor's will have no impact on the large holdings of U.S. Treasury bonds by Norway's oil fund, the head of the agency that manages the fund told MarketWatch in an interview Friday.

"The downgrade will have no effect on our view of the situation in the U.S. nor on the valuation of U.S. Treasurys nor on our holdings in U.S. Treasurys. In a way, it's irrelevant," said Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which manages the oil fund officially known as Government Pension Fund Global.

Slyngstad's views are particularly noteworthy given the oil fund's long-term investment horizon, large size and significant holdings of U.S. Treasurys. The Norwegian fund returned 0.3% in the second quarter after gains on bond investments outweighed losses in its equities portfolio, according to data released on Friday.

The fund's market value rose to 3.11 trillion kroner (roughly $560 billion) at the end of the quarter, when it held 60.5% in equities, 39.4% in fixed-income securities and 0.1% in real estate.

S&P last Friday took the unprecedented step of cutting the U.S. rating to AA-plus from triple-A, a move that, combined with worries about global growth and the euro-zone debt crisis, triggered a week of turbulence in markets.

"It's clear that we, in line with the rest of the market, have gotten new macro numbers the last few weeks that seem to point in the direction that the speed in the economy will be less than anticipated," Slyngstad said.

"For us, it's less the macro picture and more than micro picture," he noted. "Earnings growth is slowing down in quite a few industries. There are some notable exceptions like the technology sector."

The oil fund's equity investments lost 0.7% in the second quarter, while fixed-income investments returned 1.8%, as measured in foreign currencies. In fixed income, the fund's biggest holdings were U.S. bonds, followed by U.K., German, French and Italian bonds.

The euro-zone sovereign-debt crisis, which started in Greece, spread to Portugal and Ireland and is now threatening to engulf Spain, Italy and even France, has been roiling markets.

"We have not been active neither on the buying nor the selling side in government debt in southern Europe for the last quarter and neither in this quarter," Slyngstad said. "Relative to neutral exposure, we have slightly less in debt of Southern Europe. We sold nearly half of our holdings already back in 2009. We have a cash flow every week of around a billion U.S. dollars. It does mean for practical purposes that we haven't been utilizing that cash flow to buy into those markets."

Slyngstad also said the fund is "comfortable" with its holdings of French bonds and that recent unsubstantiated rumors about a possible downgrade of France's credit rating haven't changed his views.

In equities, the fund's best-performing investment, in nominal terms, in the second quarter was Swiss food giant Nestle, followed by drug makers Sanofi and Roche Holding.

The worst-performing investment was banking group HSBC, followed by J.P. Morgan Chase & Co. and Denmark's Vestas Wind Systems.

The fund's biggest equity holdings, as of June 30, included oil giants Shell, ExxonMobil, BP as well as iPad and iPhone maker Apple.

The Norwegian government saves petroleum revenues in the pension fund, so that future generations can also benefit from the oil resources first discovered in the North Sea in 1969. Thanks to its oil wealth, Norway is one of the world's richest countries known for its generous welfare state.

Copyright (c) 2011 Dow Jones & Company, Inc.

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GDF Suez Takes ExxonMobil's Stake Offshore Norway

- GDF Suez Takes ExxonMobil's Stake Offshore Norway

Thursday, July 28, 2011
GDF Suez

GDF Suez announced an important milestone in the development of its portfolio of exploration & production assets. The operations are located in a mature area in Norway.

The Group acquired an additional 20% share in the offshore Njord field and in Noatun discovery in Norway, from ExxonMobil Exploration & Production Norway AS. GDF Suez E&P Norge AS therefore becomes the first shareholder in this license with a 40% interest, alongside Statoil (20%, operator), E.ON Ruhrgas (30%), Faroe Petroleum (7.5%) and VNG (2.5%).

Jean-Marie Dauger, Executive Vice President of GDF Suez, in charge of the Global Gas & LNG Business Line, explained, "These [...] operations highlight the GDF Suez E&P's strategy and successful implementation: a balanced portfolio with a strong presence in mature areas, such as Njord in Norway."

The Njord area in the Norwegian Sea is very active. The North-West Flank which is part of the Njord license is currently being drilled from Njord whilst the fast track development Hyme (ex Gygrid) recently approved by the Ministry of Petroleum and Energy will be tied back to and processed at the Njord facilities. The start of the Low Pressure Production project on the Njord field in 2013 will increase the recovery rate and extend the life of the field, in production since 1997. Entered in the licence late 2000, GDF Suez intends to speed up development of other discoveries in this area, thus expanding the life time of the Njord platform then used as a hub for the area. The transaction is subject to approval from the Norwegian Authorities.

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Statoil Spuds Appraisal Offshore Norway

- Statoil Spuds Appraisal Offshore Norway

Tuesday, July 19, 2011
Lundin Petroleum AB

Lundin announced that drilling of appraisal/exploration well 16/2-8 on the Aldous Major South structure has commenced. The well is located in license PL265 in the Norwegian North Sea.

The Aldous Major South structure is believed to be the western continuation of the Lundin Petroleum operated PL501 Avaldsnes discovery into PL265, with primary target in sandstone of Upper and Middle Jurassic age. Secondary targets are the Cretaceous Shetland Group chalk and the Triassic Skagerrak Formation.

The planned total depth is 2,085 meters below mean sea level. The well will be drilled with the drilling rig Transocean Leader and the duration is expected to be 45 days.

Lundin Petroleum holds 10 percent interest in PL265. Partners are Statoil Petroleum AS (operator) with 40 percent interest, Petoro (30 percent) and Det norske oljeselskap ASA (20 percent).

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BP Gets Two-for-One Deal off Norway

- BP Gets Two-for-One Deal off Norway

Friday, June 24, 2011
Rigzone Staff
by Jaime Kammerzell

BP is combining two separate fields to develop its Skarv and Idun project in the northern Norwegian Sea. The project, which is due to come online in 3Q 2011, is being developed in 350 to 450 m (1,148 to 1,476 ft) of water, between the Norne and Heidrun fields in Production Licenses 212, 262, and 159. The fields contain hydrocarbons at three reservoir levels. BP and its partners estimate total recoverable reserves to be 16.8 MMcm of oil and condensate and 48.3 Bcm of rich gas.

BP serves as the operator with 24% interest, along with partners Statoil with 36%, E.On Ruhrgas Norge AS with 28%, and PGNiG Norway AS with 12%.

Skarv

Amoco, shortly before merging with BP, made an impressive hydrocarbon find in the Donnatello field on Dec. 24, 1997. The Donnatello field, which would later be renamed Skarv, is in 250 to 450 m of water on Norwegian Blocks 6507/5, 6507/6, 6507/3 and 6507/2.

The Maersk Jutlander semisubmersible drilled the well on behalf of Amoco to 4,224 m TD in the early Jurassic formation. Following the discovery, Amoco suspended the well. In 2002, BP contracted the West Alpha semisubmersible to drill the Skarv 6507/5-5 appraisal well, which reached 3,950 m TD and confirmed the 1997 find.

West Alpha

The field's recoverable resources are made up of 80% gas and 20% liquids. Oil will be produced using pressure support from gas injection, and gas will be produced by depletion.

Idun

Statoil discovered the Idun gas field in 1999. Idun is in PL 159, blocks 6507/3-3 in 350 to 450 m of water. The Byford Dolphin semisubmersible drilled the well to 3,830 m and found gas in the Jurassic sandstones. Statoil confirmed the gas discovery with two appraisal wells drilled at 6507/3-3Q and 6507/3-3B to 4,275 m. Statoil then plugged and abandoned the appraisal wells on March 25, 1999.

Field Development Plan

It took nearly 10 years for BP to submit a field development plan to jointly develop the fields. In June 2007, BP proposed a $5 billion plan for development and operation of the Skarv and Idun oil and gas fields to Norwegian authorities. The fields contain hydrocarbons at three reservoir levels with a combined estimate of 106 MMbbl, and 48 Bcm (170 Bcf) of natural gas.

According to the development plan, BP plans for oil production capacity to be 85,000 b/d and gas output at 15 MMscm/d. BP also said that it has identified additional resources in the area, which can be linked back to the Skarv/Idun production facilities at a later date.

BP's concept studies concluded that the best development solution was an FPSO [floating production, storage and offloading] vessel with subsea equipment tie backs. According to the operator, power from shore was considered, but at that time it was not technically feasible in combination with an FPSO.

Thus, BP and its partners are developing the fields with the Skarv FPSO, 16 subsea wells, and an 80 km (50 mile) gas export pipeline connected to the Aasgard Transport System. Shuttle tankers will collect oil from the 875,000 bbl vessel every 10 days.

Skarv FPSO

FPSO

The Skarv FPSO is the biggest vessel ever built for deployment on the Norwegian Continental Shelf.

BP contracted Aker Solutions in November 2005 to perform the project's front-end engineering design (FEED) and detail engineering, procurement, and construction management assistance (EPcma). Aker Solutions also carried out the design (FEED) of the hull, based on its Tentech 975 design, and living quarters.

Samsung Heavy Industry in South Korea carried out the fabrication and installation of the hull and topside.

"Skarv is located at a water depth of 370 m. This is a typical place of operation for an FPSO," said Arne Bjørlo, project director for the Skarv project. "Such vessels are also well suited to a combined oil and gas field, like this one. An FPSO provides the necessary deck space for gas processing facilities, while at the same time allowing for storage of oil."

According to Aker Solutions, the Skarv development includes a number of innovations on previous concepts. "The modules used on the topside are bigger than usual, stretching across the entire width of the deck. This gives us a more effective building process, because each module can be finished separately with a lot less hook-up on assembly," says Bjørlo.

In March 2011, Fairmount Marine tugs, Fairmount Sherpa and Fairmount Summit, delivered the Skarv FPSO to the port in Stord, Norway. The trip took 92 days to tow the FPSO 15,300 nautical miles from Samsung Heavy shipyard in Okpo, South Korea. The Skarv FPSO was installed in April 2011 and the risers and templates will be connected in July 2011.

The Fairmount Summit tugged the Skarv FPSO from the Samsung Heavy shipyard in Okpo, South Korea, to the port of Stord, Norway.

The FPSO has a production capacity of 85 MMb/d and 670 MMcf/d (19 MMcm/d) and is 292 m long, 50.6 m wide and has a towing draught of 12.2 m with a deadweight of 128.000 tons. According to Pat McHugh, Skarv project director, the hull's structure and turret, along with the 15 mooring lines anchored to the seabed, were designed to resist three combined eventualities: a total loss of FPSO power, loss of use of positioning thrusters, and 100-year storm conditions, when the hull is not in its optimal position with respect to the prevailing weather conditions.

Contracts

BP began awarding contracts for the project even before it submitted a development plan in June 2007. In March 2006, BP awarded Kongsberg Maritime a contract for the integrated control systems for safety and automation to the FPSO. The initial contract required Kongsberg to conduct a FEED study with BP and Aker Kvaerner looking at the safety and automation systems. The results were part of the materials submitted for final approval by the Norwegian authorities in early 2007.

That same month, BP signed a letter of intent with Offshore Rig Services ASA for use of the OffRig Pioneer semisubmersible to drill on the Skarv/Idun fields. The contract was subject to approval of the PDO, and was valued between $250 and $500 million, depending on the length of the program, extensions, and options.

BP also awarded Bluewater a FEED study for the Turret Mooring System on the FPSO in 2006. Once the project was approved, Bluewater was awarded an engineering, procurement, and construction (EPC) contract for the Turret Mooring System.

After the Norwegian Authorities approved BP's development plan, the operator awarded VetcoGray a contract to supply subsea production system for the Skarv/Idun field. The $265 million contract includes engineering, construction and testing of 17 wellheads and tree systems and five subsea templates with integrated manifolds, as well as work-over, tie-in, and control systems. VetcoGray also supplied five years of service for the installation, with the option to renew the contract every five years.

In March 2008, VetcoGray then awarded ClampOn a contact for the supply of ClampOn DSP-06 Subsea Particle Monitors and ClampOn DSP Pig Subsea Detectors.

In 4Q 2007, BP awarded Subsea 7 two contracts -- flowline installation and general subsea construction works -- valued at $125 million and $140 million, respectively.

Subsea 7 engineered, fabricated and installed 42 km of single flowlines, which consist of 35 km 12" x 10" diameter clad production flowlines and 7 km 10 inch diameter carbon steel gas injection flowlines. Subsea 7 attached a Direct Electrical Heating (DEH) cable to the 13 km Idun flowline, which is a part of the 35 km production flowlines.

The general construction contract included survey activities, installation of subsea structures, control umbilicals, tie-in and pre-commissioning of all flowlines, risers, control umbilicals, and the gas export pipeline. Subsea 7 also took care of the tie-in spools and protection systems. The Seven Seas vessel carried out most of the work over the course of 300 days.
In December 2007, BP contracted SBM Offshore for the turnkey supply of an internal turret. SBM says the bogie-wheel type design turret is the world's largest turret in terms of mooring loads.

BP awarded the direct electrical heating (DEH) system for the Skarv subsea production pipeline in February 2009 to Nexans, which supplied all cables and dedicated subsea equipment for the DEH system. Nexans installed a 12 in. diameter production pipeline from one of the production wells at the field to the FPSO at Skarv. The distance between the well and vessel was about 13 km. At low production and shut down, a DEH-system will be used to prevent blockage of the pipe.

In 4Q 2009, BP started drilling 11 production wells using the Borgland Dolphin. The contract was extended in June 2010 to continue drilling through late April 2011. BP then arranged for the Polar Pioneer to continue drilling production wells on the Skarv field from April 2011 to May 2013.

Borgland Dolphin

Transocean's Polar Pioneer

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Norway Sets Barents Sea Seismic Acquisition for July

- Norway Sets Barents Sea Seismic Acquisition for July

Thursday, June 09, 2011
Norwegian Petroleum Directorate

It has now been determined that there will be seismic acquisition in the eastern part of the Barents Sea from July 7. The necessary formalities surrounding the Treaty on Maritime Delimitation and Cooperation in the Barents Sea and the Arctic Ocean between Norway and Russia are now in place. The activity can start 30 days following this.

The Norwegian Petroleum Directorate will be responsible for the seismic acquisition on behalf of Norwegian authorities, and the PGS vessel Harrier Explorer will carry out the acquisition.

Harrier Explorer is now on its way to Jan Mayen to start seismic acquisition there. The vessel will acquire seismic in this area, starting June 10 and lasting three to four weeks, before setting course for the eastern part of the Barents Sea. The voyage from Jan Mayen to the eastern part of the Barents Sea will likely take four to five days.

An agreement has been entered into with PGS regarding hiring the vessel for three months with an option of an extension for approx. one month. This entails that the acquisition activity in the Barents Sea East will take place for two to three months.

The data acquisition will take place with the aid of PGS' Geostreamer technology. This is a new technology for 2D seismic acquisition, characterized in part by the fact that the streamer, which in this case is eight kilometers long, is towed somewhat deeper in the water than is the case in conventional seismic acquisition. This means that the streamer can withstand higher waves, thus making the acquisition activity less dependent on weather and consequently more efficient.

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Norway Preps for Oil Exploration in Barents Sea

- Norway Preps for Oil Exploration in Barents Sea

Wednesday, June 08, 2011
Deutsche Presse-Agentur (dpa)

Norway said it has begun preparations for oil and gas exploration in an uncharted section of the Barents Sea after solving a long-running demarcation row with Russia.

"We will start charting the previously disputed area as soon as the demarcation treaty comes into effect," Prime Minister Jens Stoltenberg said.

The foreign ministers of both countries on Tuesday exchanged documents on the new delimitation agreement, earlier approved by the parliaments of both countries. The treaty enters into force July 7.

Melting ice in the Arctic due to global warming has opened the region for exploration. The Barents Sea region is believed to host rich oil and gas reserves. There was also potential for new shipping routes.

Norway and Russia last year agreed on the demarcation of the area off northern Norway. The talks opened in 1970.

Stoltenberg said he envisaged closer cooperation with Russia, both between government agencies and businesses.

The Norwegian government has reserved 29 million dollars for seismic tests of the seabed in the Norwegian section of the Barents Sea.

The tests were necessary to assess the potential finds in the area, said Ole Borten Moe, minister of petroleum and energy.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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Marathon Halts Production Offshore Norway

- Marathon Halts Production Offshore Norway

Tuesday, May 31, 2011
Lundin Petroleum AB

Lundin reported that production from the Alvheim field (Lundin Petroleum working interest (WI) 15%) and the Volund field (Lundin Petroleum WI 35%), offshore Norway was shut down for 13 days in May due to unscheduled maintenance on the Alvheim FPSO. The shut down was required in order for the operator Marathon Petroleum Norge AS to carry out preventative maintenance works on the Alvheim FPSO's fire prevention system.

The Alvheim FPSO has now resumed normal operations and the Alvheim and Volund fields have recommenced production.

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ABS Extends Global Reach with New Norway Office

- ABS Extends Global Reach with New Norway Office

Friday, May 20, 2011
ABS

ABS announced the opening of an office in Stavanger, Norway to further extend its global reach and provide dedicated support to its growing Norwegian client base.

Known for its leadership in offshore classification and technology, the society's Stavanger office will be staffed with a professional team of offshore engineers and surveyors focused on delivering premium class service to the region.

"The opening of this office is part of ABS' ongoing commitment to deliver uncompromising service to our clients," said Christopher J. Wiernicki, ABS Chief Executive Officer and President. "Given the dynamic operating environment, our clients want us more integrated into their operational and safety program and to do that effectively, we need this local presence. For ABS it is an opportunity to better serve the industry and build upon our strong ties with the Norwegian Maritime Directorate (NMD)."

In 2009, the NMD extended its authorization to ABS to include mobile offshore drilling units (MODUs) in its scope as a Recognized Organization (RO).

Country Manager for Norway Egil Legland says he and his team look forward to building and expanding the relationships ABS has in Norway. "It's not just the office – ABS just released several new services and programs that clients have been requesting including the Offshore Asset Integrity Management (OAIM) program, says Legland. The OAIM program better leverages classification services and addresses other client needs by planning, tracking and servicing the structure and equipment throughout the life of the offshore unit.

"We recognize that today's high specification rigs require the highest operational standards," said Legland. "Owners are looking to ABS because of our experience, commitment and the service and programs we can offer to support an asset during the operational phase, not just during design and construction."

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Lundin Spuds Skalle Well Offshore Norway

Lundin Spuds Skalle Well Offshore Norway

Monday, May 16, 2011
Lundin Petroleum AB

Lundin announced that drilling of exploration well 7120/2-3 in PL438 has commenced. The well will target the Skalle prospect, which is situated to the north of the Snohvit field in the Barents Sea, offshore Norway.

The main objective of well 7120/2-3 is to test Cretaceous and Jurassic/Triassic age sandstones of a multiple target structure. Lundin Petroleum estimates the Skalle prospect contains unrisked, gross, prospective resources of 250 million barrels of oil equivalent (MMboe).

The planned total depth is 2,650 meters below mean seal level and the well will be drilled using the semi-submersible drilling rig Transocean Leader. Drilling is expected to take approximately 60 days.

Lundin Petroleum is the operator of PL438 with 25 percent interest. Partners are RWE Dea Norge AS with 20 percent interest, Petoro AS with 20 percent, Spring Energy with 17.5 percent and Talisman Energy Norge with 17.5 percent interest.

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Bristow Renews of Long-Term Norway Contract

Bristow Renews of Long-Term Norway Contract

Tuesday, May 03, 2011
Bristow Group Inc.

Bristow Group Inc. a leading provider of helicopter services to the offshore energy industry, announced Tuesday that it has been awarded a renewal contract for work in Norway valued in excess of $167 million in revenue.

William E. Chiles, President and Chief Executive Officer, said, "Our recent success in renewing this long-term contract with a key customer reinforces our long-term commitment to the Norwegian market. It also demonstrates that customers value our differentiated service capabilities provided by our unique Target Zero programs with specific delivery focus on zero accidents, zero downtime, and zero complaints."

The existing five-year contract was extended after a bid competition for another five-year term, which commences in early 2013, with the option to extend it for an additional three periods of one year each. Bristow will provide two dedicated Sikorsky S-92 large helicopters operating from our Sola base in Stavanger, Norway beginning in March 2013.

Bristow Group Inc. is the leading provider of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated and one of two helicopter service providers to the offshore energy industry with global operations. The Company has major transportation operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, Mexico, Russia and Trinidad.

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Wintershall Snags Licenses in Norway's 21st Licensing Round

Wintershall Snags Licenses in Norway's 21st Licensing Round

Monday, April 18, 2011
Wintershall AG

The Norwegian Ministry of Petroleum and Energy has assigned Wintershall Norge two new licenses in the 21st Licensing Round. Wintershall is the operator of both licences. A total of 24 production licenses were awarded on the Norwegian Continental Shelf (NCS), 12 in the Barents Sea and 12 in the Norwegian Sea. "We are pleased with the results from this round. The Norwegian Continental Shelf is one of Wintershall's core regions, and we are continually building business and commitment in Norway," said Martin Bachmann, Member of the Board of Executive Directors responsible for Exploration and Production.

In June 2010 the Ministry announced 94 licenses for which 37 companies applied. Wintershall received license PL611 in the Barents Sea (in blocks 7223/3 and 6, and 7224/1, 2, 3, 4, 5). Germany's largest E&P company will be the operator with a 40% interest, Faroe Petroleum Norge holds 40% and Petoro 20%. In the Norwegian Sea, Wintershall will be the operator of PL601 in the blocks 6609/3 and
6610/1 in the Nordland III area. The company will own a share of 40%. Rocksource, North Energy and Edison International Norway Branch each hold 20%.

Rocksource Scoops Up Blocks Offshore Norway

Rocksource Scoops Up Blocks Offshore Norway

Friday, April 15, 2011
Rocksource ASA

Rocksource has been awarded 4 new licenses in the 21st Licensing Round on the Norwegian Continental Shelf (NCS) announced by the Ministry of Oil and Energy on the April 15, 2011. All licenses contain high potential, low risk prospects that have been de-risked using Controlled Source Electromagnetic (CSEM) data, processed in the proprietary software system ‘Rocksource Discover’, prior to application. These awards mark another significant milestone in the Company’s development and add multiple, high value drillable prospects to the Rocksource prospect inventory.

 

PL 602. Blocks 6706/10 (part), 6706/11, 6706/12 (part)

This license is located on the Vema Dome in the Vøring Basin (Norwegian Sea), immediately west of the Luva, Haklang and Snefrid discoveries. Several prospects have been mapped and de-risked using 3D seismic data and CSEM. The prospects have potential targets at multiple reservoir levels.

• The license group consists of:
  
  • Statoil (Op.): 40%
  • Petoro: 20%
  • Centrica: 20%
  • Rocksource: 20%
• The work program consists of:
  
  • Year 1-3: Acquire new 2D seismic and reprocess 3D seismic. Decide on drill or drop.
  • Year 4-5: Drill exploration well.
  • Year 6: Decide on continuation or drop.

 

PL 528 B. Block 6707/10 (part)

This license is located in the Vøring Basin in the Norwegian Sea, directly northeast of the Luva, Haklang and Snefrid discoveries. The license is an extension to PL 528, and the new acreage is securing ownership of the full extent of the Ivory prospect which was awarded in the 20th Round.

• The license group consists of:
  • Suncor Energy (Operator): 40%
  • Centrica: 30%
  • Rocksource: 30%

The work program follows PL 528, where a drill or drop decision must be taken within April 2012.

 

PL 601. Blocks 6609/3 and 6610/1

This license is located in the eastern part of the Træna Basin, in the Norwegian Sea. Several leads and prospects have been mapped and de-risked using 3D seismic data and CSEM.

• The license group consists of:
  • Wintershall (Op): 40%
  • Edison International: 20%
  • North Energy: 20%
  • Rocksource: 20%
• The work program consists of:
  • Year 1-3: G&G work, reprocessing of existing 3D seismic, acquisition of minimum 250 sq.km. new 3D seismic. Carry out G&G studies where evaluation and possible CSEM acquisition is included. Decide on drill or drop.
  • Year 4-5: Drill exploration well.
  • Year 6: Decide on continuation or drop.

 

PL 610. Blocks 7722/2 and 7722/3

This license is located at the eastern margin of the Loppa High, in the Barents Sea, immediately north of the Obesum discovery. The prospectivity has been mapped and de-risked using 2D seismic data and CSEM.

• The license group consists of:
  • GDF Suez E&P (Op.): 50%%
  • Spring Energy: 25%
  • Rocksource: 25%
• The work program consists of:
  • Year 1-3: Acquisition of new 3D seismic. Decide on drill or drop.
  • Year 4-5: Drill exploration well.
  • Year 6: Decide on continuation or drop.

Rocksource's COO Gregor Maxwell commented, "These awards further add to Rocksource’s existing portfolio of prospects which have been de-risked using an integrated evaluation of EM data in combination with conventional seismic and well information. We believe each award contains low risk, high value prospectivity which we look forward to maturing with our partners."

Norway Makes Headway in Barents Sea Exploration

Norway Makes Headway in Barents Sea Exploration

Friday, April 15, 2011
Norwegian Petroleum Directorate

The Ministry of Petroleum and Energy has awarded new production licenses in the 21st licensing round on the Norwegian shelf. 29 companies were offered participation in 24 new production licenses.

Twelve of the licenses are in the Norwegian Sea and twelve in the Barents Sea. Four of these are additional acreage associated with existing production licenses.

Exploration director Sissel Eriksen of the Norwegian Petroleum Directorate (NPD) said this was the most comprehensive announcement ever in the Barents Sea, and that it also includes areas located further north than before.

"In this licensing round, we are moving further north/northwest than in existing production licenses. Therefore, this is an important step on the road towards exploring the Barents Sea," she said.

Eriksen emphasizes that the NPD is satisfied with the round, which was one of the most comprehensive ever. The interest from the companies has been significant, and it is clear that the players still believe in the Norwegian shelf.

The preparations for the round started on November 5, 2009, when the Ministry of Petroleum and Energy invited the oil companies to nominate blocks they believed should be part of the announcement. The round was announced on 23 June last year, with an application deadline of November 3.

Maersk Oil Takes Stake Offshore Norway

Maersk Oil Takes Stake Offshore Norway

Friday, April 15, 2011
Maersk Oil

Maersk Oil has been awarded a 30% non-operated share in License PL597 on the Halten Terrace offshore Norway in the 21st Licensing Round.

The operator of the license is VNG Norge A/S (40%) with Dana Petroleum Plc as partner (30%). Together with Maersk Oil, the partners are committed to carrying out seismic data reprocessing leading to a decision whether to drill an exploration well.

"This license award fits well with Maersk Oil's strategy of building up a strong exploration portfolio in our chosen focus areas in Norway. It adds to our current interests in four other licenses on the Halten Terrace," said Morten Jeppesen, Managing Director of Maersk Oil Norway.

"We are committed to growing our business in Norway through exploration and acquisitions to build a significant portfolio of exploration and producing assets in the coming years," Jeppesen said.

Halliburton Selected for Statoil's Ops Offshore Norway

Halliburton Selected for Statoil's Ops Offshore Norway

Thursday, April 14, 2011
Halliburton

Halliburton has been awarded a contract by Statoil to provide integrated drilling and well services offshore Norway with options up to eight years in duration with extended scope and activity.

Traditionally, Statoil has procured drilling and well services on a discrete basis. This is the first time Statoil has awarded an integrated well services contract in Norway, which includes project management by Halliburton, with the intent to increase efficiency and reduce development costs.

Under the first phase of the contract, Halliburton will provide directional drilling and logging-while-drilling services, surface data logging, drill bits, hole enlargement and coring services, cementing and pumping services, drilling and completion fluids, completion services – including multilateral junctions, SmartWell® completion systems and VersaFlex® expandable liner hangers – and project management.

The contract is part of Statoil's Fast Track Field Development initiative that has been launched to minimize the time from discovery to production and reduce development costs. In the Fast Track project, the service company and operator work more closely together as an integrated team. This results in better operational efficiency on the rigs, which, in turn, results in lower overall project costs for the operator. This allows the operator to develop marginal oil discoveries that would have been deemed uneconomical using traditional contracting models. For this contract, Halliburton's onshore operations team will integrate with Statoil's team in Stavanger, Norway.

"We are delighted with this contract, and we look forward to collaborating with Statoil to accelerate the field development and impact the production on the Norwegian Continental Shelf," said Jorunn Saetre, Halliburton's area vice president for Scandinavia.

Halliburton Awarded Gig for Statoil's HP/HT Fields Offshore Norway

Halliburton Awarded Gig for Statoil's HP/HT Fields Offshore Norway

Wednesday, April 06, 2011
Halliburton

by  SubseaIQ

Halliburton has been awarded several contracts by Statoil to provide services for two high-pressure/high-temperature (HP/HT) fields offshore Norway. Halliburton estimates that these significant multiyear awards have the potential to exceed more than $200 million in value.

Under these contracts, Halliburton will provide directional drilling, logging-while-drilling, cementing, drilling fluids, and completion equipment and services at the Gudrun and Brynhild fields. Drilling is scheduled to start in the third quarter of 2011.

Halliburton's proven HP/HT technology will be key in enabling the development of the Gudrun oil and natural gas field, where temperatures exceed 150°C (302°F). Statoil is operator of the Gudrun field, which is planned for startup in the first quarter of 2014. The Brynhild HP/HT oil and gas discovery is approximately three kilometers east of the Gudrun field.

"We are proud to have been awarded these technically challenging contracts for Gudrun and Brynhild," said Brady Murphy, Halliburton's vice president for the Europe/West Africa Region. "These awards, together with our recent HP/HT wins in other offshore basins, reflect Halliburton's technology investment and proven performance in challenging well conditions. This will be an important contribution to further development offshore Norway."

Maersk Oil Strengthens North Sea Portfolio with Norway Acquisition

Maersk Oil Strengthens North Sea Portfolio with Norway Acquisition

Monday, April 04, 2011

Maersk Oil

Maersk Oil has acquired shares in three production licenses in Norway from Marathon Petroleum Norge A/S, a wholly-owned subsidiary of Marathon Oil, in exchange for Maersk Oil's financial contribution to the Earb South exploration well.

Marathon Petroleum Norge A/S is currently drilling the well on the Earb South Prospect in the South Viking Graben. Drilling is expected to be completed in May.

As a result of the deal, Maersk Oil will have a 15 percent share in Production Licenses PL505 and PL505BS, where Marathon Petroleum Norge A/S remains the operator (35%) with Lundin Petroleum (30%) and VNG (20%) as partners.

Maersk Oil will also have a 10% share in Production Licence PL570, operated by VNG (40%) with Marathon Petroleum Norge A/S (20%) and Lundin Petroleum (30%).

"This is quality acreage which helps our goal of building a strong portfolio in this part of the North Sea," said Maersk Oil Managing Director in Norway, Morten Jeppesen.

"We believe Maersk Oil's experience in similar plays in both Norway and across the border in the UK could be extremely useful in appraising this acreage, which we believe has a significant potential," Jeppesen said.

The transaction is subject to the necessary authority approvals.

Maersk Oil will now have a total of ten production licenses, three operated, in Norway.