Costs force rethink on Norwegian Sea tieback

Offshore staff

TANANGER, Norway – Norske Shell and its partners in the PL 255 license in the Norwegian Sea are to take a longer look at development of the high-pressure/high-temperature Linnorm field.

New estimates show the cost has risen since concept selection at the end of last year. This is in part due to the technical complexity of the project, involving a subsea tieback to the Draugen platform.

“We still aim to achieve a profitable development of Linnorm,” said Monika Hausenblas, Shell’s upstream director for exploration and production on the Norwegian continental shelf.

“Linnorm has always been a marginal development from an economic perspective and at the same time, it includes many challenging technical innovations. With the increased costs in the market, Linnorm is with the current concept solutions and reserves too costly.

“We therefore would need more time to optimize the solutions and if possible, increase the reserve base.”

11/26/2012

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