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  1. NPD foresees steady stream of Norwegian field developments

    Offshore staff OSLO, Norway – Investments across the Norwegian shelf last year totaled NOK135 billion ($15.85 billion), NOK50 billion ($5.86 billion) less than the peak years 2013 and 2014, according to the Norwegian Petroleum Directorate (NPD). Spending may remain relatively subdued through 2018, but is then likely to pick up again, NPD believes. Last year, five plans for development and operation (PDO) were submitted, with a total investment value of NOK23 billion ($2.7 billion). Seven Norwegian development projects are currently in progress with a total value of NOK233 billion ($27.3 billion). Following several years of high exploration activity, 36 exploration wells were drilled in 2016, 20 down on the preceding year. There were 18 discoveries, one more than in 2015, of which 14 discoveries were in the North Sea, with two each in the Norwegian Sea and the Barents Sea . NPD’s director general Bente Nyland said: “Many of the discoveries are small, but most are located near existing infrastructure. This means that they can quickly become profitable developments if they are tied in to operational fields and facilities.” According to Nyland, the pace of exploration activity going forward is uncertain. It depends on how much operators follow up on new discoveries, and the take-up of new exploration acreage. “It is very important to maintain exploration activity at a high level in order to maintain stable production in the future,” she added. Last year 56 production licenses were issued under Norway’s APA 2015 round and 10 under the 23 rd licensing round , the latter all in the Barents Sea. The first exploration well in the newly opened southeastern Barents Sea should spud shortly. The probability of making new big discoveries is also highest in this area, Nyland said: “New surveys also indicate significant opportunities in areas that are not open for petroleum activities.” Overall spending on the shelf dropped 16% last year, with a further 11% fall anticipated in 2017 to a total of NOK120 billion ($14 billion). A further 5% dip is likely during 2017-18, in part due to lower activity, but also to the general reduction in oilfield service costs. Future start-ups and new field developments should push investments upwards again from 2019 onwards. Over the next three years, Gina Krog , Aasta Hansteen , Martin Linge , and Phase 1 of Johan Sverdrup will all come onstream, in addition to smaller-scale subsea developments of the Maria , Utgard , Byrding , Dvalin , Trestakk , and Oda fields. Other major new development projects are under evaluation such as Johan Sverdrup Phase II, Johan Castberg in the Barents Sea, Snilehorn, Pil, Snefrid North and Skarfjell. In 2016, Norway’s offshore oil production rose for the third consecutive year and the start-up of Goliat means the Barents Sea is for the first time contributing to oil output. Gas production is expected to remain relatively stable over the next few years. This year, overall production should be similar to the total in 2016, around 1.62 MMb/d. A decline is then likely until 2020, when Johan Sverdrup begins ramping up. However, there is uncertainty in the forecast related to drilling of new wells, start-up of new fields, reservoirs’ ability to deliver, and the regularity of fields in operation. This year NPD forecasts around 30 exploration wells across the shelf, and the continued downward drift is a concern, the association says, as new profitable resources need to be proven to sustain oil and gas production beyond 2025. However, the number of applications and awards in the most recent licensing rounds shows interest remain strong in the Norwegian shelf, and several of this year’s planned wells in 2017 are potentially high-impact. There was little exploration activity in the Norwegian Sea last year, but an upturn is likely this year, including a deepwater wildcat well that may provide additional resources for the Aasta Hansteen development. More than half of Norway’s undiscovered resources are in the Barents Sea, which is also where the most anticipated wildcats are due to be drilled this year. Last year one PDO was approved for Oseberg Vestflanken 2 in the North Sea, where 110 MMboe will be produced from an unmanned wellhead platform at a cost of NOK 8.2 billion ($960 million), with start-up scheduled for 2018. This is the first of three planned phases for the remaining reserves in the Oseberg area. Yet to be developed resources from Oseberg, Oseberg South, and Oseberg East are estimated at 850 MMboe. NPD forecasts that around 10 PDOs will be submitted over the next few years. In 2017 it anticipates PDOs for Johan Castberg in the Barents Sea and the further development of the Snorre field in the North Sea. Next year, the PDO for Johan Sverdrup Phase II is likely to go forward. The new development of Snorre, which started production in 1979, involves adding six new subsea templates tied in to the two existing platforms, increasing recovery from the field by nearly 30 MMcm of oil, equivalent to the size of the Goliat field in the Barents Sea. The lifetime of the field should be extended to 2040. Finally, four North Sea fields were shut down in 2016: Varg, Volve, Jette , and Jotun. ExxonMobil will still use parts of the Jotun field, Jotun A/FPSO for operation of the Ringhorne and Balder fields. NPD received cessation plans for three more North Sea fields: Oselvar, Gyda , and the old living quarters platform on Valhall. In 2016, the Ministry of Petroleum and Energy also made disposal decisions for the following facilities: Varg, Skirne, Atla, Ekofisk 2/4 C and Tor 2/4 E, Jette, and Jotun. 01/16/2017

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    Mon, 16 Jan 2017

  2. AVAD Energy Partners sees equity commitment from Pearl Energy Investments, Natural Gas Partners

    AVAD Energy Partners LLC, a newly formed oil and natural gas production company, has raised $77.5 million from Pearl Energy Investments, Natural Gas Partners, and management.

    Online Articles

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    Thu, 12 Jan 2017

  3. Tullow assessing Jubilee FPSO mooring options

    Tullow Oil says work to rectify problems with the turret systems on the Jubilee FPSO is on course, with the vessel set to be spread-moored on its current heading by the end of January.

    Online Articles

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    Wed, 11 Jan 2017

  4. UK association issues guidelines for use of drones offshore

    Oil & Gas UK has issued new guidelines for use offshore of unmanned aerial systems, otherwise known as drones.

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    Wed, 11 Jan 2017

  1. Energean opts for FPSO scheme for Karish, Tanin fields off Israel

    Online Articles

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    Fri, 13 Jan 2017

  2. Trinidad and Tobago to divest part of Petrotrin

    The Trinidad and Tobago government said it will divest part of state-owned Petrotrin as it tries to increase crude production, increase efficiency, and return the company to profitability.

    Online Articles

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    Thu, 12 Jan 2017

  3. API official lists policy areas for upcoming confirmation hearings

    US senators considering nominees to lead the US Departments of the Interior and Energy and the Environmental Protection Agency should ask about ways policies can be improved to create jobs, benefit consumers, and improve the general economy and domestic energy security, an American Petroleum ...

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    Fri, 13 Jan 2017

  4. ExxonMobil develops efficient new technology to dehydrate natural gas

    This “in-line” technology could be deployed at both land-based and offshore natural gas production operations.

    Online Articles

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    Fri, 6 Jan 2017

  5. ExxonMobil develops in-line gas dehydration technology

    ExxonMobil has developed cMIST technology, which dehydrates natural gas using a patented absorption system inside pipes.

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    Thu, 5 Jan 2017

  6. E.ON dismisses call for new spin-off business

    A suggestion by one of E.ON’s shareholders to spin off the company’s power distribution business is unlikely to be heeded by management at the German utility.

    Online Articles

    Online Articles

    Tue, 10 Jan 2017

  7. Serica scales back development scope for North Sea Columbus

    Serica Energy continues to seek a solution for its Columbus field in the UK central North Sea.

    Online Articles

    Online Articles

    Tue, 10 Jan 2017

  8. EIA: US to become net energy exporter in outlook to 2050

    According to the US Energy Information Administration’s Annual Energy Outlook 2017 (AEO 2017), which has projections through 2050, the US will become a net energy exporter in most cases as petroleum liquid imports fall and natural gas exports rise.

    Online Articles

    Online Articles

    Thu, 5 Jan 2017

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