DONG to develop Nini, Cecilie, operate Siri

July 23, 2002
The Danish Energy Authority has granted to Dansk Olie & Naturgas AS (DONG AS) and other licensees of Nini and Cecilie oil fields in the Danish North Sea authority to develop those fields.

By OGJ editors

HOUSTON, July 23 -- The Danish Energy Authority has granted to Dansk Olie & Naturgas AS (DONG AS) and other licensees of Nini and Cecilie oil fields in the Danish North Sea authority to develop those fields. Reserves in the two fields are estimated at 65 million bbl of crude oil. Production is planned for late summer 2003.

Nini and Cecilie will be unmanned and tied in to the Siri platform via 10-in. water injection and 4-in. gas lift pipeline connections. DONG will operate all three fields, having purchased operator Statoil ASA's 40% interest in Siri last spring (OGJ May 13, 2002, p. 28). DONG will become Siri operator Aug. 1.

Siri lies in 60 m of water on Block 5604/20 on the Ringkbing-Fyn high about 130 miles west of Esbjerg, Denmark. Other Siri licensees are Enterprise Oil Ltd. 20%, DONG E&P 20%, Phillips Petroleum Co.12.5%, and Denerco Oil AS 7.5%.

A 825 million Danish kroner contract has been awarded to Saipem UK Ltd.(contractor) and Bladt Industries AS (subcontractor) to construct and install the platforms and establish pipeline connections between each field and the Siri platform. The unmanned platforms will be built at Bladt Industries in Aalborg, Denmark

Total development costs, including project management and reserves, modification of the Siri platform, and oil production and water injection wells, are expected to be about 2.5 billion kroner.

Ownership interests in Nini are DONG 40%, Denerco Oil AS 30%, and RWE DEA AG 30%. Cecilie interests include DONG 22%, Denerco Oil 37%, Denerco Petroleum AS 24%, and RWE DEA 17%.