North Sea Oselvar production well set to be shelved

Offshore staff

STAVANGER, Norway – Norwegian Energy Co. (Noreco) expects an updated reservoir model to reduce reserves from the Oselvar field in the southern Norwegian North Sea.

Performance issues mean that a previously planned production well due to start up in 2016 will not be drilled.

Elsewhere in theNorwegian sector, Noreco has reduced its holding in its operated PL 484 Verdande license to 30%, after agreeing to farm out 10% to Explora Petroleum. The deal is subject to regulatory approval. An exploratory well will likely be drilled during the first half of next year in the UK North Sea.

Currently, Noreco is relinquishing UK North Sea license P1650 and has told partner Trapoil that it no longer intends to drill a well on the Crazy Horse structure.

Norecotook the decision to pare down its exploration commitment because of its financial position, with output from all its three main North Sea production centers constrained by continuing technical problems. This relinquishment, the company acknowledges, may impact its chances of securing new UK offshore licenses.
10/21/2013