A group led by DONG E&P Norge has started production at Oselvar field in the southern North Sea offshore Norway.
Oil and gas flowing from the Oselvar subsea template transit a 23-km flow line to BP-operated Ula field. Two horizontal wells are producing, and a third horizontal well is being drilled and is to be completed in mid-2012.
Gas is reinjected, and oil is shipped via Ekofisk to Teesside. Peak production is estimated at 16,500-20,000 b/d of oil equivalent at capacity from 53 million boe of reserves, 50% oil. Production is expected to continue for about 20 years.
DONG E&P has 55% interest in Oselvar. Bayerngas Norge has 30%, and Norwegian Energy Co. ASA has 15%.