Norway: Dong Energy Agrees a Development Plan for Marulk Gas Field

DONG Energy has agreed a development plan for the Norwegian gas field Marulk, in which DONG Energy has a 30% stake. The costs of developing the Marulk field are expected to total approximately DKK 3.8 billion, of which DONG Energy’s share will amount to approximately DKK 1.1 billion.

“The development of Marulk is in line with our existing Norwegian activities and will further strengthen the supply of natural gas to our customers. The gas field is located in the Norwegian Sea in an area where we already have natural gas production and exploration activities,” said Executive Vice President Søren

Gath Hansen, who is responsible for DONG Energy’s oil and gas activities. Total estimated commercial reserves amount to 71 million barrels of oil equivalents (boe), corresponding to a DONG Energy share of 21 million boe.

Marulk is expected to be in production in the second quarter of 2012. The additional licensees in Marulk are Eni (operator) and Statoil.

According to the plan Marulk will be developed via the adjacent Norne field, which is already in production. Two production wells are to be connected to and controlled from the production vessel at the Norne field via a sea-bed installation. The same solution was used when the gas field Alve, in which DONG Energy is also a licensee, was connected to the Norne field last year.

The gas will be transported from the production vessel via facilities on the west coast of Norway through the Gassled system to either the European continent or to the UK. The development, and hence the investment, is subject to approval by the Norwegian authorities. The content of this announcement does not alter the previously announced expectations for DONG Energy’s financial result for 2010 or the announced expected level of investments.

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Source:Dongenergy,July 14, 2010;