DONG Energy will be increasing its production of oil and gas via production from the Norwegian Oselvar field. Oselvar is DONG Energy’s second development as operator in Norway. The field was put into production Saturday 14 April.
“We are now the operator of two Norwegian fields. This confirms our long-term position in Norway,” says Anders Mørland , who is responsible for DONG Energy’s Norwegian oil and gas activities.
The increased production of oil and gas is in keeping with DONG Energy’s strategy, which is to make significant investments in the company’s oil and gas business and in increased generation of electricity from offshore wind farms.
Oselvar follows hard on the heels of the Norwegian Marulk gas field, which Eni as operator put into production earlier in April. DONG Energy is license partner in Marulk.
”We have been active in exploration in Norway for a number of years, and last winter we drilled our first well in the Barents Sea. The Ormen Lange gas field is our largest asset on the Norwegian shelf,” says Anders Mørland.
Oselvar has an expected production life of approx. 20 years. Estimated reserves – converted to barrels of oil – are around 50 million barrels, around half of which is oil and half gas.
The oil from the field will be sent to Teesside on the UK east coast for onward sale. The natural gas will be transported via pipeline to the Ula field 23 kilometres from Oselvar. Here, the gas will be pumped down into Ula’s oil reservoir to increase the pressure and thereby also the recovery rate.
DONG Energy is the operator of the Oselvar field with an ownership interest of 55 per cent, while Bayerngas Norge has a 30 per cent stake and Noreco a 15 per cent stake. The Oselvar field is located in the southern part of the North Sea.
[mappress] Source: Dong Energy April 16, 2012