DNO to develop Froy oil field in Norwegian North Sea
DNO Norway and partner Premier Oil PLC plan to develop Froy oil field in the Norwegian North Sea and will start production in late 2012.
LONDON, Sept. 20 -- DNO Norway and partner Premier Oil PLC plan to develop Froy oil field in the Norwegian North Sea and will start production in late 2012.
Froy is expected to produce 56 million bbl of oil with an initial production of 28,000 b/d starting in third quarter 2012. Oil will be stored in a tank on the seabed prior to offloading to shuttle tankers.
The partners have given their development plan to the Norwegian petroleum and energy ministry for the redevelopment project. Froy was abandoned in 2001 because of low oil prices.
"A detailed Heads of Agreement has been entered into with Teekay Petrojarl AS regarding the lease of a jack-up production unit. Premier is planning to enter into an agreement with Teekay whereby it will become a 49% partner in the ownership of the unit," Premier Oil said.
The companies require the government's approval to move forward. They will finalize the contracts which remain conditional upon satisfactory financing and guarantee arrangements being available, key subcontracts being put in place, subsequent board approvals from Det norkse, Premier, and Teekay.
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