Norway Approves Jette Development

Det norske oljeselskap ASA has received the go-ahead to develop Jette. Today, the Norwegian authorities approved the Plan for Development and Operation (PDO) of the field, which is operated by Det norske.

Jette is the company’s first field development as operator.  CEO Erik Haugane states that this represents a new milestone for Det norske as a company.

– Jette is a small development relative to other North Sea projects, but it still represents value to us, to our partners, and to the Norwegian society. We are of the opinion that it is preferable to start off with a small-scale development before moving on to more comprehensive projects. In a few years, Det norske can become a significant operator of field developments off Norway. This approval represents a significant step in the development of a Det norske toward a fully-fledged exploration and development company operating on the Norwegian Shelf.

First oil in 2013

Jette contains about 14 million barrels of oil equivalents, based on a 30 percent recovery rate. Daily production during the first year will constitute approximately 14 000 barrels. The estimated development costs of Jette amount to approximately 2.5 billion NOK. Given the current oil price, Jette may generate gross revenues amounting to 8 billion NOK.

Operational costs are lower compared to typical operating costs of stand-alone developments, thus enhancing the profitability of the development. Production is scheduled to commence during Q1 2013. Det norske has secured financing for the development of Jette.

The field will be developed and operated from Det norske’s headquarter in Trondheim, whereas day-to-day operations will be followed up by ExxonMobil. Det norske’s partner in the Jette development is Petoro.

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Source: Det Norske, February 17, 2012