Petoro buying stake in Zidane field

Norwegian energy company Petoro is on the verge of buying a stake in the DEA Norge-operated Zidane development, offshore Norway.

According to Offshore.no, Petoro has entered into a definitive agreement with Austrian OMV, a partner in the Norwegian Sea field, to buy OMV’s 20 pct stake, thus marking the Austrian firm’s exit from the project.

Offshore Energy Today has reached out to Petoro, seeking confirmation.

“I can confirm that Petoro has acquired OMV’s 20 percent stake in The Dvalin-license.  The agreement is subject to government approval. We see this as an opportunity to increase the value of the SDFI (State’s Direct Financial Interest),” a Petroro spokesperson told Offshore Energy Today.

As for the Zidane field, the Norwegian petroleum ministry has recently given the operator Dea Norge until October 3, 2016 to submit a plan for development and operation. According to reports, the plan could be submitted in September.

The Zidane is a gas field in the Norwegian Sea discovered in 2010. The Zidane field is located in Production Licence 435, operated by Dea Norge. The Zidane field, located approximately 15 kilometers North West of the Heidrun field and 35 kilometers South of the Skarv field in the Norwegian Sea, was awarded in APA 2006. The first well was drilled in September 2010 and discovered a 150 meters gas column in the Fangst group.

The second discovery, drilled to the adjacent structure, was made in 2012. Zidane 2 also discovered a 140 meters column of gas in the same interval. The total size of the discoveries is estimated to between 14 – 22 billion cubic meters of recoverable gas.

The field has been sitting undeveloped for a few years, but Dea Norge in April told Offshore Energy Today that it reached an agreement to tie-in the Zidane resources to the nearby Heidrun platform.

DEA Norge operates the field with 40% stake, with partners being OMV Norge 20% , Maersk Oil Norway 20% and Edison Norge 20%.

While the PDO and the final investment decision are yet to be submitted, several reports have claimed that the Zidane could start producing in the second half of 2020. According to a Reuters report from May 2016, the development could cost around $1.2 billion. This will be DEA Norge’s first field development project as operator.

Offshore Energy Today Staff