Potential development of oil discovery on the cards as appraisal ops in Norwegian waters end

ConocoPhillips Skandinavia, a subsidiary of the U.S.-headquartered energy giant ConocoPhillips, has confirmed a previously made oil discovery in the Norwegian Sea, with the drilling of its second appraisal well. Once the collected data is analyzed, the partners will evaluate a possible development of this oil find off the coast of Norway.

ConocoPhillips Skandinavia, as the operator of production licence 891, which was awarded as patrt of the awards in predefined areas (APA) in 2016, has concluded drilling the second appraisal well, 6507/5-12 S, on the 6507/5-10 S (Slagugle) oil discovery about 22 kilometers northeast of the Heidrun field and about 270 kilometers north of Kristiansund.

The Slagugle discovery was proven in 2020 in well 6507/5-10 S in reservoir rocks in the Lower Jurassic (Åre Formation) and Triassic (Grey Beds). The previous attempt to delineate the discovery in 2022 covered the well 6507/5-11, which was dry. 

However, the objective of well 6507/5-12 S was to delineate the discovery proven in well 6507/5-10 S, and to conduct a formation test to obtain a better understanding of reservoir properties and connectivity in the hydrocarbon-bearing layers. 

The well 6507/5-12 S encountered several oil columns in a 188-meter interval in the Åre Formation and Grey Beds, 75 meters of which consist of sandstone with very good reservoir properties. The water depth at the site is 341 meters. 

With extensive data collection and sampling carried out, a formation test was completed, and the maximum production rate was 650 standard cubic meters of oil per flow day through a 36/64-inch nozzle opening.

The appraisal well 6507/5-12 S, which was drilled to a vertical depth of 2,169 meters below sea level and 2,260 meters measured depth, was terminated in the Triassic (Red Beds). The well, which has been permanently plugged and abandoned, was drilled using the Odfjell Drilling-managed Deepsea Yantai rig.

According to the Norwegian Offshore Directorate, the preliminary calculations indicate a resource estimate in the range of 4.9 – 9.8 million standard cubic meters of oil equivalent, which corresponds to around 30.8 – 61.6 million barrels of oil equivalent in Triassic reservoir rocks (Middle Grey Beds). 

The additional volumes in the lower Åre Formation and Upper Grey Beds, which are not included in the production test, represent a possible upside potential. 

The next stop for the Deepsea Yantai rig is production license 586 in the Norwegian Sea, where it will drill well 6406/11-2 S for Vår Energi and its partners.