Det norske Submits First PDO as Field Operator

- Det norske Submits First PDO as Field Operator

Monday, September 05, 2011
Det norske Oljeselskap

Det norske will present a plan for development and operation (PDO) of Jette to the Minister of Petroleum and Energy Ola Borten Moe, Monday. The PDO will be submitted on behalf of the partners in the Jette Group, which in addition to Det norske includes Petoro, Dana Petroleum and Bridge Energy.

Erik Haugane, CEO of Det norske, said it is a big and important decision for the company to submit a PDO for Jette. "This is a small development relative to other North Sea-projects, but it is our first field development as operator. We believe it is best to start off with a small-scale development before moving on to bigger projects, like Draupne. In a few years, we could also become a significant operator of field developments off Norway."

Jette is a small field located in the North Sea, just east of the Jotun Field. Jette will be produced with two horizontal wells, tied back to the Jotun floating production storage and offloading vessel (FPSO). Jette is a very good example of what the government describes as time-critical resources.

"Even though Jette is a small development, it still represents value for the companies and the Norwegian society. Det norske believes that oil companies should also take on these projects," said Haugane

First oil in 2013

Jette contains about 14 million barrels of oil equivalents, based on a 30 percent recovery rate. Daily production the first year will be approximately 14 000 barrels, of which some 9 000 barrels will accrue to Det norske. Estimated development costs of Jette is approximately 2,5 billion NOK. Given the current oil price, Jette may generate gross revenues of 8 billion NOK. Operational costs are lower compared to typical operating costs of stand-alone developments and therefore enhancing the profitability of the development. Production startup is set to 1st quarter 2013.

Through a share issue last week, Det norske strengthened its equity ahead of developing Jette. Field development and operation will be led by Det norske in Trondheim, while daily monitoring of operations is carried out by ExxonMobil.

The partners in Jette are Det norske (63.3 percent, operator), Dana Petroleum (19.2 percent), Bridge Energy (6.0 percent) and Petoro (11.5 percent).

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Antrim Submits Development Plan for N. Sea Causeway Field

- Antrim Submits Development Plan for N. Sea Causeway Field

Wednesday, August 31, 2011
Antrim Energy Inc.

Antrim, a partner in the Causeway Field located in UKCS Block 211/22a South West Area and Block 211/23d (Antrim 35.5%), announced submission of the final Field Development Plan ("FDP") to the Department of Energy and Climate Change ("DECC") and that Board approval has been gained from partners to progress into the development phase. DECC approval of the Causeway FDP is anticipated during 2011.

The Causeway FDP includes a production well and a water injection well in the East and Far East fault panels and will utilize existing wells on the field drilled during the appraisal phase. The production well will be completed with dual electrical submersible pumps and first oil is anticipated in mid 2012. Hydrocarbons will be transported to and processed at the Cormorant North platform operated by TAQA Bratani Limited before being exported to the Sullom Voe terminal for sale. Antrim's reserves evaluator, McDaniel and Associates Consultants Ltd., estimate 8.9 million barrels of proved plus probable oil reserves (Antrim net 3.2 million barrels) from the East and Far East fault compartments (as of December 31, 2010). Development costs net to Antrim are estimated at $32 million, inclusive of $21.8 million associated with the previously announced sale of Antrim Causeway (N.I.) Limited (Aug. 9, 2011). Commitments are now in place for all long lead equipment and the operator has awarded a letter of intent for the main subsea installation contract to Technip UK Limited.

The Causeway development plan includes an option to develop the Central panel, which is still under review by the partners and not included in the above referenced reserves or costs.

Stephen Greer, CEO of Antrim, commented, "The submission of the FDP for Causeway marks a significant milestone for Antrim, demonstrating a clear and defined path to first oil production from the Company's UK North Sea properties."

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Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

- Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

Tuesday, August 16, 2011
Statoil

The partners in the Åsgard licenses have submitted a plan for development and operation (PDO) of subsea gas compression to maintain production from the Mikkel and Midgard reservoirs.

Øystein Michelsen, Statoil's executive vice president for Development and Production Norway (DPN), presented the PDO to Ola Borten Moe, Norway's minister for petroleum and energy.

"The decision to improve recovery from Åsgard is one of the most important we are taking this year to sustain output on the Norwegian continental shelf," said Michelsen.

"This solution has been made possible through an innovative partnership on the Åsgard license."

The PDO represents a quantum leap in technological terms, which could contribute to a substantial boost in recovery factor and production life for a number of gas fields.

Subsea compression on Åsgard is expected to improve recovery from the Mikkel and Midgard fields by some 278 million barrels of oil equivalent.

That makes the project one of the most important contributors to new volumes, and provides future opportunities for improved recovery from a number of fields.

Quantum leap

Natural pressure in Midgard and Mikkel will become too low over time to maintain stable flow and a high production profile from the Åsgard B platform in the Norwegian Sea.

To compensate for this decline, Statoil intends to install seabed compressors near the wellheads and so increase the pressure. Wellstreams will be piped in a common line to Åsgard B.

"This represents a quantum leap in subsea technology, and an important step in realizing our vision of a complete underwater plant," said Margareth Øvrum, Statoil's executive vice president for Technology, Projects and Drilling.

"The technology has a substantial potential for improving recovery," she added, and emphasized that it is important for future field development in deep water and Arctic regions.

"Testing and qualifying new solutions is vital to the success of our technological developments," Øvrum noted. "We have already come a long way, but know that the remaining stretch will be a demanding one.

"Developing technology is always challenging, but we have surmounted technological obstacles before and are confident that we will succeed in doing so again on Åsgard together with our partners."

She adds that substantial synergy exists between technological qualification on Åsgard and the work being done by Statoil together with operator Shell on the Ormen Lange gas field.

Åsgard's bright future

Åsgard is a crucial hub on the Halten Bank and a key factor in the Norwegian Sea. Subsea compression from Mikkel and Midgard will safeguard future production from the field, said Michelsen.

Statoil is working continuously on other measures to improve recovery in the same area – including reducing processing pressure, drilling and maintaining wells, and applying innovative solutions.

Åsgard is an important hub in a prospective area, and spare processing capacity which becomes available in its facilities can also be offered to others.

"Our vision is a field which is still producing in 2050 with a recovery factor among the best in the world," said Michelsen.

The subsea compression development will also expand capacity in the Åsgard Transport pipeline, which carries gas from Norwegian Sea installations to the Kårstø plant north of Stavanger.

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Xcite Submits Field Development Plan for Bentley Field

- Xcite Submits Field Development Plan for Bentley Field

Wednesday, August 03, 2011
Xcite Energy Ltd.

Xcite announced that the final draft of the Field Development Plan ("FDP") for the Bentley field has now been submitted to the Department of Energy and Climate Change ("DECC").

The FDP outlines the proposed development plan for the Bentley field, which addresses the first stage production program in detail and also references the second stage production program, which together encompasses the core area of the reservoir.

The Company will respond to any issues raised by DECC in the coming months, in expectation of achieving approval in due course.

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Statoil Submits Katla Fast-Track Development Plan

Statoil Submits Katla Fast-Track Development Plan

Monday, May 02, 2011
Statoil

Statoil has submitted a plan for development and operation (PDO) for the Katla discovery in the North Sea to the Norwegian Ministry of Petroleum and Energy. Total investments are estimated at NOK 5.4 billion in current NOK.

The Katla discovery was proven in March 2009, and is situated 13 kilometers south-west of the Oseberg South platform.

The discovery has been included in Statoil's portfolio of fast-track developments, with production start-up planned in the first quarter of 2013.

This is the third fast-track development plan Statoil has submitted to the Norwegian Ministry of Petroleum and Energy this year.

Previous fast-track PDOs have been submitted for Visund South and Vigdis North-East.

"This shows that we are able to realize profitable development of smaller discoveries, and this portfolio of developments gives us important production contributions in a short timeframe," says Ivar Aasheim, Statoil's vice president for field development on the Norwegian shelf.

Oil and gas to Oseberg

The estimated recoverable reserves on Katla amount to 45 million barrels of oil equivalents. The plan is to develop the discovery with a seabed template and four wells.

Two of the wells will produce oil and gas, while the two other wells will inject water into the reservoir for pressure support.

The oil from Katla will be sent to the Oseberg South platform. The gas will be used as pressure support on Oseberg Omega North, and thus help maintain production from this reservoir.

"Katla reinforces the Oseberg South area by bringing new volumes into a well-maintained process facility," says Knut Henrik Dalland, Statoil's head of production for the Oseberg area.

Partners: Statoil 49.3% (operator), the Norwegian state's direct financial interest (SDFI) 33.6%, Total 10%, ExxonMobil 4.7% and ConocoPhillips 2.4%.

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Statoil Submits Fast-Track Plan for Vigdis

Statoil Submits Fast-Track Plan for Vigdis

Tuesday, April 12, 2011
Statoil
by SubseaIQ

Statoil has submitted a plan for development and operation (PDO) for the Vigdis North-East development in the North Sea to the Norwegian Ministry of Petroleum and Energy. Production start is scheduled for December 2012.

This is the second fast-track development plan submitted to the Norwegian Ministry of Petroleum and Energy this year. The Visund South fast-track development plan was handed over to the ministry earlier this year.

"We envisage the first five fast-track developments coming on stream at the turn of the year 2012/13," said Øystein Michelsen, Statoil's executive vice president for Development and Production Norway. "The two plans we have submitted so far this year prove that we are on the right track regarding this part of our portfolio."

Vigdis North-East is planned as a subsea development located 1.6 kilometers from the existing subsea installation on the Vigdis field.

The development will comprise a standard template with four wells – three producers and one water injector. Vigdis North-East will be tied back to the Snorre A field, which is located approximately seven kilometers away, via the existing infrastructure.

Produced oil and gas will be transported in a new pipeline to the existing Vigdis B template and then piped to Snorre A.

Recoverable reserves are estimated at around 33 million barrels of oil equivalent, with investments calculated at NOK 4.2 billion (current price).

Infrastructure-led discoveries help extend the life of the installations and are an important contributor to optimizing potential on the Norwegian continental shelf. Snorre is one of the areas with an established infrastructure and spare processing capacity.

"We have extensive experience and expertise in the area in addition to available processing and transport capacity," said Halfdan Knudsen, head of the fast-track portfolio. "Therefore Vigdis North-East is suited for a fast-track development with standard solutions. It will also increase the volumes sent to Snorre A."

Vigdis North-East is one of the projects of the fast-track portfolio, which was launched in 2010. The goal is to make smaller finds profitable by halving the time from discovery to production through the utilisation of standard solutions.