TESTS DELAYED AT POTENTIAL BARENTS OIL STRIKE

Production testing of a promising oil strike in the Barents Sea off northern Norway has been delayed by bad weather. Operator Den norske stats oljeselskap AS intended to begin testing its Block 7128/4 1 wildcat Feb. 14 but had to reschedule tests to begin Feb. 16. The discovery was thought at first to be the first potentially commercial oil discovery in the Barents Sea. If true, this would boost flagging interest in the area.

Feb. 21, 1994

2 min read

Production testing of a promising oil strike in the Barents Sea off northern Norway has been delayed by bad weather.

Operator Den norske stats oljeselskap AS intended to begin testing its Block 7128/4 1 wildcat Feb. 14 but had to reschedule tests to begin Feb. 16.

The discovery was thought at first to be the first potentially commercial oil discovery in the Barents Sea. If true, this would boost flagging interest in the area.

However, the well is now thought likely to have reserves of about 30 million bbl of oil. Given the 400 m water depth on the block and the remoteness of the discovery, it is thought unlikely to be of commercial significance.

Statoil said the well found hydrocarbons in Permian sands. It was the third time oil has been found in this structure, which Statoil said confirms the validity of its Barents Sea exploration model.

This may be a breakthrough on Barents Sea geology, said a Statoil official. Although no drilling is under way off northern Norway, Statoil may drill another well there this year.

A commercial oil discovery is seen as a possible key for unlocking large gas reserves discovered in the Barents Sea. Development of the gas reserves is a long term prospect, with export as LNG most likely.

Snohvit field in Block 7121/4 is the largest find, with estimated reserves of 3.25 tcf of gas, 50 million bbl of condensate, and 40 million bbl of oil. Nearby gas finds awaiting full appraisal include Albatross and Askeladd.

The last well drilled before the oil discovery was a Norske SheD AS wildcat well in Block 7229/11. Drilled during August December last year, it was a dry hole.

Shell has no plans for further drilling in the Barents Sea, but last year completed seismic surveys over other parts of the area.

Norway's government is concerned about the low level of interest in Barents Sea exploration. A white paper due soon in parliament is believed to propose incentives for drilling.