DEA AG, Hamburg, has submitted the plan for development and operation (PDO) of Dvalin field, previously known as Zidane field, to Norway’s Ministry of Petroleum and Energy.
Production is slated to begin in 2020. A total volume of 18.2 billion cu m of natural gas from two reservoirs is expected to be produced from the Dvalin license. Development cost is estimated at €1.1 billion.
Dvalin will be developed with a four-well subsea template connected to the Heidrun platform (OGJ Online, Mar. 18, 2013). Gas will be processed at Heidrun in a new module before being transported in a new export pipeline connected to the 482.4-km Polarled pipeline. It will then move to the Nyhamna onshore gas terminal, where it will be processed and transported to the European market.
“Together with our partners, we have come up with a development solution with sustainable long-term economics in an environment of low market prices,” commented Hans-Hermann Andreae, managing director of DEA Norge AS. Dvalin is DEA’s first operated field development project in Norway.
The firm cites “creative work in the project team and market developments in the supplier industry” as making the project economically sound. “Over the last few years we have managed to reduce cost by more than 20%,” said Andreae. “As a consequence, DEA has got the opportunity to open a new area in the Norwegian Sea for gas production and export.”
Dvalin field is on Blocks 6507/7/9 and 6507/8 of PL435 in the Norwegian Sea, 15 km northwest of Heidrun and 290 km from Nyhamna in Norway.
DEA Norge is operator of PL435 with 40% interest. Partners are Edison SPA with 20%, Maersk Oil 20%, and OMV AG 20%. OMV Norge AS last month agreed to sell its 20% stake in the license to Petoro AS. The agreement is subject to approval by Norway and Petoro's general assembly.