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Esso Norge AS expects to begin oil production in Balder field in the Norwegian North Sea, following installation of a floating production unit (FPU).
The FPU ship was installed towards the end of August on Block 25/11a by Smit Maritime Contractors BV, Rotterdam. The process took 2 days and involved the connection of 10 mooring chains, each 1,320 m long, with five anchor-handling tugs.
Balder has estimated reserves of 170 million bbl of oil and is expected to produce up to 75,000 b/d of oil though 15 subsea wells tied back to the FPU.
A development cost for Balder of 5 billion kroner ($770 million) and production start-up in early 1997 were anticipated when the project was given the green light in February 1996 (OGJ, Feb. 19, 1996, p. 58). However, an Esso Norge official told OGJ, the ship fulfilled the requirements of neither the operator nor the Norwegian authorities when it arrived in Norway from the Singapore construction yard, and it required considerable modification work.
The official said Balder is now anticipated to begin production in the third quarter, and a further 3 billion kroner ($385 million) is reckoned to have been added to the overall project cost by the delays and additional work.
