THREE FIELDS MARKED FOR DEVELOPMENT OFF NORWAY

Three fields off Norway are slated for development as Norwegian shelf activity returns to normal following last summer's disputes between government and oil companies.

Controversy is still in the air, however, with most partners in a proposed gas trunk line having their preferred route rejected by the Ministry of Industry & Energy.

A ministry official confirmed that plans for development and operation (PDOs) had been submitted by Den norske stats oljeselskap AS for Yme field and by Saga Petroleum AS for Vigdis field and further development of Snorre field.

Statoil's Yme project was proposed last year, at about the time plans for development of the larger 440 million bbl Norne field were disclosed. Known until recently as Block 9/2 discovery, Yme is a 23 million bbl field some distance from infrastructure.

Yme development was promoted as a pilot scheme for a number of small Norwegian fields that border on commerciality. Statoil said Yme development likely will involve use of a production jack up with offshore loading into tankers (OGJ, Oct. 25, 1993, p. 99).

VIGDIS PLAN

Saga submitted a PDO for a 5 billion kroner ($765 million) development program in Block 34/7 Vigdis field. This involve development as a subsea satellite of Snorre field, due on stream in summer 1997.

Vigdis holds estimated reserves of 180 million bbl of oil. Eight production wells and four water injectors are envisaged, with oil processing on the Snorre tension leg platform (TLP). From Snorre, Vigdis oil is to be moved by pipeline to Statfjord for export by shuttle tanker.

Saga also submitted a PDO for Phase 2 Snorre development, which is to involve 4.5 billion kroner ($670 million) program.

The original PDO for Snorre proposed three options for further production from the northern part of Snorre reservoir, including movement of the TLP over the northern sector or further subsea developments.

The new plan calls for leaving the TLP in place and tapping into the northern part of the reservoir with extended reach wells. The far northern part of the field will be tapped by subsea development. Horizontal well sections reduced the need for production wells in the original plan.

Saga has slated first production from Snorre Phase 2 development in 1998-99.

The ministry said further development of Snorre would expand field reserves to an estimated 720 million to 1 billion bbl. This compares with 550 million bbl of oil said to be within reach of Phase 1 development.

At the end of September, Statoil submitted a PDO for Norne, breaking a deadlock over Norwegian field developments caused by oil companies' frustration with severe license terms (OGJ, Oct. 3, p. 30).

PIPELINE SNUB

Statoil and partners involved in a plan to build the Zeepipe IIB trunk line to take gas from Norway's fields to Germany reacted angrily to the ministry's rejection of a preferred route.

The group submitted a plan to build a pipeline to carry Troll field gas from Kollsnes in western Norway directly to Emden, Germany.

This, said Statoil, would save 1-3 billion kroner ($150-450 million) in construction costs compared with the alternative route proposed.

A Statoil official said the direct route was preferred by companies holding 84% of Zeepipe interests: Statoil, Norske Shell AS, Esso Norge AS, and Norsk Conoco AS.

Remaining partners Norsk Hydro AS, Elf Petroleum Norge AS, Saga Petroleum AS, and Total Norge AS are believed to have favored building the trunk line from Kollsnes to meet two major gas gathering platforms on Block 16/11 that are linked to Emden.

Conoco in particular was reported to be incensed by the ministry's refusal. The company was said to have accused the government of unpredictability because it called for lowering of development costs while rejecting this lower cost pipeline route.

The ministry said the pipeline group had been asked to submit a revised plan for a Troll gas pipeline, following the route from Kollsnes to Block 16/11.

This option was said to offer more flexibility for development of the Norwegian shelf, enabling gas fields in the Haltenbanken area of the Norwegian Sea to be tied in, along with North Sea projects.

The direct route may be cheaper to build, the ministry said, but the route chosen by government was likely to prove more economical in the long term.