By OGJ editors
HOUSTON, Mar. 19 -- Royal Dutch/Shell unit AS Norske Shell, production operator for Ormen Lange natural gas field on deepwater Block 650515/5-1 in the Norwegian Sea, has signed a letter of intent to award a $167 million contract to Smedvig ASA, Stavanger, for the semisubmersible drillship West Navigator to drill in the field.
The assignment, subject to final Ormen Lange governmental approval, includes eight deepwater wells with options for four others, Smedvig said. Drilling is scheduled to begin in second half 2005 and continue for 740 days, while the option period could add an additional year to this project.
Ormen Lange is scheduled to come on stream in October 2007. Norsk Hydro SA is development operator of the field, which contains proved reserves of some 90 million boe, a figure revised downward Thursday from 256 million boe (OGJ Online, Mar. 18, 2004).