Norway: Det Norske Puts Off Froy Field Development for Some Better Times

As a result of the decision made by Det norske, a plan for development and operations (PDO) for the Frøy field will not be filed this year, and it has not been decided when such a plan will be submitted.

The plan was to submit a PDO in the autumn 2010 with a FPSO concept. However, this was delayed in order to evaluate the possibility of using simultaneous water and gas injection, rather than water injection only as a production strategy. The results from these studies indicated that SWAG only had a marginal impact on project economics.

The Frøy field development, where the partnership already in January 2008 decided to push forward with the project, has been delayed several times. These delays have opened new development alternatives, which Det norske finds prudent to explore.

COO Øyvind Bratsberg says that the company has major field developments ahead as an operator:

– Det norske will over the coming years develop from a pure exploration company into a exploration, field development and production company. Going forward the company will concentrate its resources on the Draupne field development and smaller developments, such as Jetta. Frøy will be developed at a later stage, and possibly with a different development solution.

Frøy holds about 60 million barrels of recoverable oil. Det norske is operator for Frøy and holds 50 percent. Premier Oil Norge is the only partner in the license with 50 percent.

About Det norske:

Det norske is the second-largest operating company on the Norwegian Continental Shelf both considering number of operatorships, exploration- and drilling activity. The aggressive exploration program is the largest an independent Norwegian company has ever conducted on the NCS. Det norske runs its activities in a safe and responsible manner in close cooperation with the authorities. Det norske will in 2011 participate in over 10 drilling operations as partner or as operator.

Det norske currently employs a staff of around 200. The company`s registered office is located in Trondheim. The company also has offices in Oslo, Harstad, and Stavanger. Det norske is listed on the Oslo Stock Exchange (DETNOR).

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Source:Det Norske  , April 1, 2011; Image:May 6, 2006