Norway's offshore electrification grid

The Utsira High network powers a number of key fields on the Norwegian Continental Shelf including:Johan Sverdrup (Equinor)Edvard Grieg (Lundin)Ivar Aasen (Akerbp)Gina Krog (Equinor)Gudrun (Equinor)Sleipner (Equin...

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Partial electrification of Sleipner approved

The Ministry of Petroleum and Energy has approved a revised plan for development and operation (PDO) for partial electrification of the Sleipner field centre. The field centre will be tied to the Utsira High area solution, and Sleipner is expected to cut emissions by more than 150,000 tonnes of CO₂ per year.“Partial electrification of the Sleipner field centre will contribute to major cuts in emissions from our activities and provide significant...

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PGNiG confirms termination of Russian gas imports from end 2022

Poland's PGNiG has notified Gazprom of its intention to terminate imports of Russian pipeline gas from the end of 2022. This will now increase the country's reliant on US LNG (which at this time many US Gulf Coast LNG projects still have to be sanctioned and not guaranteed to come online) and the long awaited Baltic pipeline to take Norwegian gas to Poland. The move is not a big surprise and is completely consistent with all the messages the...

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Dry well in the Barents near Korpfjell

The 7335/3-1 exploration well on Production Licence 859 has drilled a dry well. The partners on the licence are: Equinor 65% operator, Lundin 15%, DNO 20%. The licence lies in the Barents Sea and the 7335/3-1 well is located c.8km southeast of the Korpfjell gas discovery. Both the primary and secondary exploration targets encountered sandy and poor reservoirs. The well was drilled by the West Hercules drilling rig to 4,268m below the sea surface...

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Maria, you've gotta see her!

Wintershall has shut-in the Maria field since February, approximately a year after first production, following poor production performance. It is understood that reserves have been downgraded from 207mmbbl to c.60 mmbbl. The field is now undergoing testing and monitoring to see how best to produce the remaining reserves the recover the lost reserves whilst managing the reservoir. It is understood that the NPD has to review plans and sign off...

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Total sells Norweigian assets to AkerBP for USD205 million

Total has agreed to sell interests in a portfolio of 11 licences in Norway to AkerBP for a cash consideration of USD205 million. The portfolio includes four discoveries with net recoverable resources of 83mmboe. The acquisition allows AkerBP to consolidate its position around the Alvheim, NOAKA and Skarv hubs as well as adding exploration acreage near its operated Ula field (AkerBP 80%). Increasing stakes in fields and discoveries and having...

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Faroe finds a Valentine in Suncor – farms out 17.5% in Fenja to Suncor

Faroe has announced the sale of a 17.5% interest in the Fenja development to Suncor for USD54.5 million which includes the transfer of tax losses. Faroe will retain a 7.5% interest which fully aligns its equity interest with that of the other fields in the Greater Njord Area (Njord, Bauge, Hyme and Fenja). The transaction crystallises value of the asset pre-development and reduces Faroe’s capex (estimated to GBP70 million). The PDO for Fenja...

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VNG to evaluate options for its Norwegian E&P business

As widely expected, VNG's owner EnBW is looking for a partner or buyer for its E&P business VNG - full press release below. As part of VNG Group’s strategic programme “VNG 2030+”, VNG – Verbundnetz Gas Aktiengesellschaft (VNG AG) will explore strategic options for its oil and gas exploration and production business in Norway and Denmark, VNG Norge AS (“VNG Norge”). As VNG AG sees long term value creation potential in the E&P-business,...

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Norway awards record 75 exploration licences in 2017 APA

Norway has awarded a record number of 75 exploration licences in the APA 2017 licensing round to 34 companies. The licences comprised 45 in the Norwegian North Sea, 22 in the Norwegian Sea and 8 in the Barents Sea. Statoil was the biggest winnder with 31 awards. Supermajors ConocoPhillips, ExxonMobil, Shell and Total also picked up licences. Of the E&Ps: Aker BP was the winner with 23 licences (14 as operator) Lundin has been awarded 14 licences (5 as operator) DNO has been awarded in 10 licences Faroe Petroleum has been awarded 8 licences...

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Aker BP submits three PDOs

Aker BP ASA (Aker BP) has submitted the Plans for Development and Operations ("PDOs") for the Valhall Flank West, Ærfugl (formerly Snadd) and Skogul (formerly Storklakken) fields to the Norwegian Ministry of Petroleum and Energy. Valhall Flank East This development represents an extension on the western Flank of the Valhall field. It will be developed from a new Normally Unmanned Installation and will be tied back to the Valhall field centre....

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Statoil acquires Martin Linge from Total for USD1.45bn

Total has agreed to sell all of its interests in the Martin Linge field (51%) and Garantiana discovery (40%) on the Norwegian Continental Shelf to Statoil for USD1.45bn with an effective date of January 1st, 2017.Statoil will also receive remaining tax balances with a nominal post-tax value of more than USD 1 billion. Martin Linge is a long life oil and gas development with estimated recoverable resources in excess of 300 mmboe. Originally scheduled...

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Point Resources acquires ExxonMobil's Norwegian operated assets

On 29th March 2017, Point Resources announced its acquisition of ExxonMobil's operated upstream business in Norway for an undisclosed amount (estimated valuation of c.USD1bn). The deal transforms Point Resources into a top 10 producer on the Norwegian Continental shelf and increases production c.10-fold to 48mboepd while adding 128mmboe of oil-weighted reserves. The transaction adds significant technical capability with the transfer of 300...

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Barents Sea licence awards

The Norwegian Ministry of Petroleum and Energy has issued ten new production licences in the Barents Sea as part of Norway’s 23rd licencing round, following applications made by 26 companies in January. This is the first time since 1994 that new exploration acreage has been made available to the industry in the southeastern Barents Sea.  From the International E&P names: Lundin has been awarded interests in five licences (three...

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Premier Oil exits Norway

Premier Oil Norwegian operation Source: Premier Oil On 16 November 2015, Premier Oil announced that it had agreed to sell its Norwegian business to Det Norske for USD120 million. The Norwegian business consists of the Premier Oil Norges subsidiary and includes the Vette development, adjacent Mackerel and Herring discoveries, a non-operated stake in Froy and seven exploration licences. The transaction is expected to close before year end and...

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Ivar Aasen crib sheet

Contains 4 fields: Ivar Aasen, West Cable, Hanz, Asha PDO approved in March 2013 Development costs relatively high Discovery of Asha in December 2012, and inclusion of Asha in development improves economics Edvard Greig and Johan Sverdrup could push cost of services market higher Ivar Aasen expected to receive transitional terms , whereas other fields will be taxed under new terms Participation Ivar Aasen Area contains...

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