Statoil Evaluating Njord A Options. Thinking of Building New Platform

Faroe Petroleum today announced that Njord field partnership is, among other things, thinking of constructing a new platform, to replace Njord A.

As previously announced on 26 September 2013, the Njord operator Statoil has been carrying out a detailed analysis of the platform’s structural integrity. The preliminary results from this numerical analysis led to the temporary shut down of both production and drilling to allow for the deck structure to be reinforced. The work on this project has started and the operator’s expectation is that this will be completed in Q2 2014, and the Njord facility will then be brought back on production.

Related: Statoil Evacuates Workers from Njord A Platform

Significant oil and gas resources remain in the Njord field and surrounding catchment area with potential for over 20 years of remaining production. These resources include the developed volumes which can be produced from the existing wells on Njord and Hyme, further infill drilling in the Njord field, development of the North West Flank gas and condensate accumulations and development of the newly announced Snilehorn oil discovery. There is also significant additional prospectivity that may be matured towards exploration drilling in the coming years along with undeveloped third party discoveries in the catchment area.

On this basis, the Njord partnership is evaluating a number of scenarios for the long term further development of Njord and the accumulations in the surrounding area, which range from:

• continuing production with the Njord A facility following the current deck reinforcement project and identifying alternative means of continuing development drilling on Njord
• bringing the Njord A facility to shore at an optimal time for further strengthening of the structure or replacing the hull
• potentially building a new Njord A platform or FPSO

The objective of this ongoing scenario evaluation work is to identify a robust plan for the long term development of the hydrocarbon resources in the Njord area in order to create maximum value and reserves exploitation. This scenario evaluation work is expected to reach its conclusion towards the end of 2014.

Graham Stewart, Chief Executive, Faroe Petroleum said:

“Given the very significant remaining value potential in Njord and the surrounding area, we continue to work closely with the operator in order to identify the best long term plans for Njord. We also support Statoil in their efforts to ensure the Njord facility remains a safe work place for everyone involved. Conducting our operations in a safe manner is of paramount importance and remains the first priority in everything we do.

“While we await finalisation of the Njord structural integrity review and scenario analysis, we look forward to one of our most exciting periods ahead. Faroe has a significant programme of fully-funded high impact exploration and appraisal wells under way, with the Faroe-operated Novus well currently drilling and the Butch, Solberg and Pil wells soon to commence.”

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Press Release, November 21, 2013