PHILLIPS RULES OUT EKOFISK NITROGEN PROJECT

April 9, 1990
The Phillips Petroleum Co. Norway group has dropped plans for a nitrogen injection plant in Ekofisk oil and gas field in the Norwegian North Sea. Better than expected performance of the field's $1.4 billion waterflood project, coupled with rising costs of the nitrogen proposal, were responsible for the decision. In the British North Sea, Phillips Petroleum Co. United Kingdom Ltd. installed a second platform in Audrey field in Block 48/15a of the southern basin.

The Phillips Petroleum Co. Norway group has dropped plans for a nitrogen injection plant in Ekofisk oil and gas field in the Norwegian North Sea.

Better than expected performance of the field's $1.4 billion waterflood project, coupled with rising costs of the nitrogen proposal, were responsible for the decision.

In the British North Sea, Phillips Petroleum Co. United Kingdom Ltd. installed a second platform in Audrey field in Block 48/15a of the southern basin.

In other action, Marathon Petroleum Ireland Ltd. obtained approval from Ireland's energy ministry for the first subsea development, Ballycotton gas field, in the Celtic Sea. Development cost will be $35 million.

EKOFISK WATERFLOOD

Phillips said Ekofisk's waterflood was moving through the reservoir more slowly and efficiently than projected with results 30-40% better than expected. Most of the reserves that would have been recovered by nitrogen injection are being recovered by the waterflood.

In addition, Phillips found that nitrogen breakthrough into the gas stream occurred earlier than expected. A $250-350 million cleanup unit would have been needed, as well as a $200 million nitrogen production and injection platform. New water injection facilities are being installed in the central Ekofisk complex. By first quarter 1991 water injection volume will increase to 500,000 b/d from 375,000 b/d.

Members of the Ekofisk group are Phillips, Norske Fina AS, Norsk Agip AS, Elf Aquitaine Norge AS, Norsk Hydro Produksjon AS, Total Marine Norsk AS, Den norkse stats oljeselskap AS, Eurafrep Norge AS, Coparex Norge, and Cofranord AS.

AUDREY PLATFORM

Audrey's new six slot unit is to go on stream in the fall, increasing maximum gas delivery capacity to British Gas plc to 450 MMcfd from 327 MMcfd. The field extends into Block 48/15a.

Phillips' partners in Audrey are Fina Exploration Ltd., Conoco (U.K.) Ltd., Oryx U.K. Energy Co., Agip (U.K.) Ltd., Lasmo North Sea plc, and Gas Council (Exploration) Ltd.

BALLYCOTTON DEVELOPMENT

Marathon is designing facilities for Ballycotton gas field in Block 48/20, about 24 miles southeast of Cork Harbor and 9 miles north of Marathon's Kinsale Head gas field.

A March 1989 discovery, Ballycotton is to go on stream by October 1991 and achieve peak flow of 50 MMcfd. Its subsea production system, scheduled for installation in summer 1991, will be connected to Kinsale Head's Platform Bravo for pipeline shipment and onshore delivery of gas to the Irish Gas Board.

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