Nick Terdre, Contributing Editor
High levels of activity in the UK and Norwegian sectors of the North Sea look set to continue, assisted by high oil prices and recent exploration success.
Some 220 exploration and appraisal (E&A) wells are planned for the UK in 2008-10, according to consultants Hannon Westwood, suggesting that last year’s level, when 65 vertical E&A wells were drilled, will at least be maintained this year.
Some promising results already have been recorded. Following six months’ appraisal which ended in February, Oilexco appears to have a substantial find on its hands at Huntington in block 22/14b. It will seek development approval in mid-year, aiming at start-up in late 2009/early 2010.
ConocoPhillips has made a new discovery via what was thought to be an appraisal well on the Jasmine gas/condensate discovery in 30/6, close to the Judy hub in 30/7. It since has embarked on several sidetracks to appraise both finds, which together appear to constitute a substantial accumulation.
Talisman has booked 21 MMbbl at Cayley (22/17-3) following seven months’ exploration/appraisal drilling. This could be a subsea tieback to the operator’s Montrose or Arbroath platforms, being about 10 km (6.2 mi) from both.
Among other fields now being prepared for development are Ithaca’s Athena, Talisman’s Auk North and Burghley, Antrim’s Causeway, Serica’s Columbus, Venture’s Ensign and West Wick, and BP’s Foinaven South-West west of Shetland. Redevelopment is also topical, with Fairfield planning to bring the Crawford and Maureen oil fields back to life, and ATP doing the same for Cheviot (ex Emerald).
Among the fields due onstream later this year are Total’s Jura, Oilexco’s Ptarmigan, Granby’s Tristan North-West, and Tullow’s Wissey.
Norway
In the Norwegian sector, exploration activity should remain high, with 35-40 E&A wells forecast by the Norwegian Petroleum Directorate, compared with 32 drilled last year. A record 52 licenses were awarded in February in the annual round of licensing for mature acreage.
Of six wildcat wells completed so far this year, three – all operated by StatoilHydro – have discovered hydrocarbons: the Gamma gas find (2-3 bcm [70.6-105.9 bcf]) in Norwegian Sea block 6407/6, Obesum (19-38 MMbbl oil) in the Barents Sea, and a Grane-area oil find of 20-30 MMbbl in the North Sea.
Eni is looking at development options for the Marulk gas field, which lies 21 km (13 mi) from StatoilHydro’s Norne FPSO, after an appraisal well lifted reserves to an estimated 12-19 bcm (424-671 bcf).
Smaller companies also are making their mark. In February, Lundin confirmed an extension of the Nemo field in the southern North Sea, increasing estimated reserves to 20-30 MMbbl. In the same area, Dong is preparing a plan for development and operation (PDO) for the Oselvar field, where appraisal drilling has confirmed some 40 MMboe of reserves.
Eni plans to submit a PDO for the Goliat oil field in the Barents Sea this fall, with a view to start-up in 2012, having recently decided to develop the field with an FPSO. PDOs also have been submitted for StatoilHydro’s Morvin and Yttergryta fields, both in the Åsgard area of the Norwegian Sea, and for Det norske oljeselskap’s Frøy redevelopment project in the North Sea.
Marathon’s long-delayed Alvheim project should start up in the current quarter, following installation of the FPSO on the field in March. This will also lead to start-up on Vilje, which is tied back to Alvheim. StatoilHydro’s Volve field came onstream in January and its Alve, Gulltopp, and Oseberg Delta developments, as well as Talisman’s Rev, are due to follow suit this year.
Netherlands
In the Netherlands, 12 wells are planned for 2008, according to the Nogepa industry association. New players are beginning to make their mark by developing existing finds as well as through exploration.
Cirrus, for example, plans to bring gas reserves at M1-A and M7-A onstream in early 2009 and late 2008, respectively, while Grove is looking to develop Horizon West and Island the Amstel oil discovery in the third quarter.
Wintershall is developing last year’s gas find in E18a with an unmanned platform tied back to the F16 processing platform. It also plans to drill subsea wells on the P9-A and P9-B gas finds and tie them back to P6-D.
This year, Total will bring K5-F onstream with two subsea wells fitted with all-electric subsea trees.
Denmark
Activity remains at a modest level in the Danish sector. The only E&A drilling has been by Maersk, which has not released results on the three wells spudded and/or completed this year. Meanwhile, the company awaits the Danish Energy Agency’s go-ahead for a fourth stage of development of Halfdan.
In January, the DEA approved DONG’s plan for the development of Nini East. This involves an unmanned platform tied back to Nini, with start-up scheduled for late 2009.
Ireland
Off Ireland, Shell hopes to have its controversial Corrib gas development onstream next year. Drilling is half completed and construction of the onshore terminal is under way.
Island Oil & Gas has emerged as one of the active players. It is considering a pilot development of the Connemara field off the west coast while also studying development options for the Schull and Old Head of Kinsale gas finds in the south, with start-up tentatively scheduled for 2009.
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