Norway field pair get green light
Making music: Edvard Grieg
11 June 2012 14:55 GMT
The final go-ahead for Edvard Grieg, formerly named Luno, after it gained government approval earlier this year means Swedish operator Lundin Petroleum can move forward on the Nkr24.2 billion ($4.2 billion) development.
It is the first project to progress to the development phase in the oil-rich Utsira High area of the Norwegian North Sea, which also hosts the giant Johan Sverdrup field.
The Edvard Grieg field – renamed after the famous 19th century composer – is estimated to hold about 186 million barrels of oil equivalent and is scheduled to come on stream in the fourth quarter of 2015.
“This development marks the start of development of a new area on the [Norwegian] shelf where many discoveries have been made of late that will be developed in the future,” said Oil & Energy Minister Ola Borten Moe.
He said it would also mean a new player would gain operatorship of a standalone project, in line with the Oslo government’s goal to open the door to a wider number of players.
The Edvard Grieg development plan includes drilling of 15 wells from a jack-up rig, a processing platform on a jacket structure and export pipelines tied back to existing infrastructure.
It also includes conditions that would facilitate land-based electricity supplies as part of a an eventual coordinated onshore power solution for Utsira High fields being promoted by the government.
Lundin earlier this year struck an agreement for a joint development of Grieg with the nearby Draupne field operated by Det Norske Oljeselskap.
The Swedish operator holds a 50% stake in the field, with partners Wintershall (30%) and RWE Dea (20%).
Meanwhile, French operator Total has also secured parliamentary approval for its Martin Linge development, formerly named Hild, with total investment targeted at Nkr26 billion.
The field, which holds estimated recoverable reserves of 189 million boe, will be exploited using a fixed platform with gas to be exported via the UK pipeline system and oil to be processed and stored on a floating storage and offloading vessel for export by shuttle tanker.
Total holds a 51% stake as operator, with state holding company Petoro (30%) and Statoil (19%) as partners.