Thursday, 12 February 2015

Aasta Hansteen Area


  • Located in Norwegian Sea; Aasta Hansteen discovered in 1997 but remained undeveloped due to the remoteness
    • Area includes Snefrid Sør and Haklang, both discovered in 2008
    • Statoil (75%*), OMV (15%), COP (10%)
    • Area thought to contain >2.4 GIIP, estimated recoery c.66%
  • PDO submitted in January 2013 and received approval in April 2013
    • Development will utilise subsea wells tied back to SPAR platform
    • Power supply expected to be generated on platform due to high cost and difficulty of supplying electricity from shore (distance)
    • First production expected in Q3 2017
  • Aasta Hansteen will be first deepwater development in Voring Basin; facilities expected to be used by other fields and discoveries in area
  • Gas will be exported by new 480km pipeline (Polarled pipeline) from SPAR to Nyhamna gas terminal; condensate will be offloaded from the SPAR
  • Standalone economics are marginal, due to remoteness of area
    • Tie-backs will improve economics (tariff income)
    • Attractiveness of area surrounding Aasta Hansteen demonstrated by high take-up of licences in recent licensing rounds
    • Polarled pipeline will draw further investment and exploration
  • Government announced changes to fiscal regime in May 2013 - PDO submitted prior to announced change so should be eligible for transitional terms (7.5% capital uplift vs. 5.5%)

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