The Norwegian Offshore Directorate (NOD), reporting to Norway’s Ministry of Energy, has taken steps to carry out a study of one of the largest undeveloped gas discoveries on the Norwegian Continental Shelf (NCS) to speed up the process of attracting interest in its development while the infrastructure is still in place to do so.
While describing Gro , known as the 6603/12-1 well, as “a diamond in the rough,” the Norwegian Offshore Directorate explains that there is a considerable value creation potential here, but time is running out. Located in the Norwegian Sea, about 160 kilometers from the Åsta Hansteen field and 350 kilometers west of Sandnessjøen, this discovery was made by Shell in 2009 and delineated in 2010.
Arne Jacobsen , Assistant Director for Technology and Subsurface at the Norwegian Offshore Directorate, commented: “Gro has been left untouched in recent years. There’s a time-limit on this, because the discovery needs to be tied back to the Åsta Hansteen field while we still have infrastructure in the area. In ten years, it could be too late.
“Gro is yet another in a long line of gas discoveries that remain undeveloped for various reasons. Many of them are in tight reservoirs, which makes production challenging.”
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After TGS acquired a new data set in 2019, the discovery was relinquished in 2021 to the authorities from then-licensees, Equinor and Wintershall. The Norwegian Offshore Directorate claims there is significant uncertainty about the size of the discovery, with its early estimates indicating a very broad range from 10–100 billion standard cubic meters of recoverable gas.
The size has now been projected at about 52 billion standard cubic meters of gas in place. The NOD hired the consulting firm Terra Stream Energy to conduct a study of the discovery, with all relevant subsurface topics assessed, showing three static models, covering the volume range in the discovery.
Commenting on the study, Jacobsen, who points out that several interesting discoveries have been made in the Vøring Basin and that there is extensive exploration activity in the area, underlined: “This can shed light on how we understand Gro and give the industry access to static geo-models they can work to refine further.
“How could Gro fit into a larger development of the area? The companies can use this study to evaluate the potential of the discovery on its own, or as part of an area solution. The next opportunity to apply is the upcoming round of awards in pre-defined areas (APA).”
The study of Gro has resulted in geological models and a report that will be made available to companies on the NCS. The Norwegian Offshore Directorate is also considering similar studies for other undeveloped gas discoveries on the NCS.
Jacobsen emphasized: “We want to elevate discoveries without a production licence, many of which are in tight reservoirs. If the goal is profitable development, this will need to happen while the infrastructure is still in place.
“The NCS needs more experience with these recovery methods. If we can get the ball rolling on that, this will also reduce the cost of developing Gro.”