Det norske updates North Sea Ivar Aasen progress

Offshore staff

TRONDHEIM, NorwayDet norske oljeselskap has budgeted offshore capex this year of $925-975 million and exploration expenditure of $160-170 million.

The company’s operated Ivar Aasen development in the central Norwegian North Sea is expected to deliver first oil in 4Q. Sail-away of the platform topsides (currently 94% complete) from the SMOE yard in Singapore is scheduled for May with offshore lifting operations to follow in July.

Drilling is ahead of schedule, with four production wells and one water injector finalized. The jackup Maersk Interceptor will drill more wells through 2Q.

Construction of the living quarters at Stord in Norway is also on schedule.

At the Det norske-operated Alvheim area of the North Sea, 4Q 2015 production was impacted by replacement of a high voltage drive motor for one of the gas compressors.

Drilling of the tri-lateral BoaKamNorth well for a subsea tie-in to the FPSO started in October. The partners signed a new contract for the semisubmersible Transocean Arctic to drill four more wells in the Alvheim area at a day rate of $179,000.

Det norske is a partner in the Statoil-operated Gina Krog development in the North Sea. The jackup Maersk Integrator continues pre-drilling of production wells at the platform location – the topsides should be installed this summer, followed by first oil in mid-2017.

Statoil has lowered its capex estimated for Phase 1 of the Johan Sverdrup project, also in the North Sea by 12% from the figure in the development plan, with a breakeven oil price now at $30/bbl.

Det norske adds that the partners have approved debottlenecking measures to increase Phase 1 production capacity.

Statoil estimates the full-field development capex at NOK160-190 billion ($18.53-22 billion), down from NOK170-220 billion ($19.7-25.48 billion) in the original plan.

Late next year, the company is expected to submit its plan for all future phases of Johan Sverdrup. Phase 2 should start up in 2022.

Last July, Det norske filed a complaint on the Ministry of Petroleum and Energy’s decision on the distribution of interests in the project. In December, Norway’s King in Council upheld that decision made by the ministry.

Det norske is assessing this verdict and will consider whether to contest it in court.

02/17/2016

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