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Renewed speed at Frøy Det norske is working intensely to speed up the redevelopment of the Frøy-field. The financial crisis and a low oil price have made the work delayed.
The goal is to provide a renewed Plan for Development and Operation (PDO) in 2010. If this succeeds, the first oil from Frøy can be produced in 2013.
Det norske looks at several ways to reduce costs in the Frøy-project. At the same time the oil prices have risen substantially over the past year. Various solutions for the development are considered.
The license have had more time to work after the Norwegian authorities prolonged the license period with 10 years, until 2019, owing to the fact that the work commitment for the license were fulfilled.
Det norske believes that the change in the market situation provides the opportunity to improve the economy of the Frøy-project, and consolidates the contingency as Frøy as a field center.
One exploration well is drilled near Frøy, and one more is planned for. Storklakken in PL460 will be drilled in the first quarter of 2010. Det norske is operator for the license.
East Frigg Gamma Delta was a discovery made in license 442 in the autumn 2009. StatoilHydro is the operator of PL442, and Det norske holds a 20 percent interest in the license.
The prospect David will most likely be drilled in PL102, where Total is the operator. All these licenses are in the vicinity of PL364, which the Frøy-field is a part of.
Partners in the license 364 are the Det norske oljeselskap ASA as operator with a 50 percent stake, and Premier Oil Norway AS with 50 percent.
The history
Det norske submitted a Plan for Development and Operation (PDO) on Friday 12 September 2008, with support from both partners in Production License (PL) 364.
This was the first time in 12 years that an independent Norwegian oil company submitted a PDO. Recoverable reserves from the Frøy Field are estimated at 56 million barrels, with an initial production of about 28,000 barrels per day.
The Frøy Field is located in the vicinity of the Heimdal Field, 200 km west of Haugesund. This is an area containing several smaller oil discoveries that have not been developed. In addition, there is promising exploration potential in the area, and more exploration wells will be drilled in adjacent licenses over the next years.
Det norske is the operator of two licenses in this area, and license partner in two other licenses. The area may contain 300 - 500 million barrels of recoverable oil.
The Frøy Field is located in Production License 364 in blocks 25/2, 25/3, 25/5 & 25/6 (parts) in the North Sea. It was in production in the 1995 - 2001 period and produced 35 Mbbls, equaling 18 percent of the reserves in the field. The field was closed during a low oil price regime.
Det norske holds a 40 percent interest in PL 414 (Kalvklumpen), 40 percent in PL 460 (Storklakken/Fonna), 25 percent in PL 035/272/362 (Fulla), and 20 percent in PL 442 (Gamma Delta).
As operator, Det norske oljeselskap has prepared an environmental impact assessment as part of the Plan for Development and Operation (PDO).
The Environmental Impact Assessment for PL 364 Frøy can be downloaded here (in Norwegian only):
FR-PERT-S-1030 Ny utbygging og drift av Frøy Del II - Konsekvensutredning
The comments to the Environmental Impact Assessment have now been submitted to the authorities, and may be downloaded here (in Norwegian only):
Svar på høringskommentarer til Frøy KU
FR-DENOR-S-10391 Kraft fra land til Frøy
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