NORWEGIAN SEA FIELDS STUDIED FOR DEVELOPMENT

Alison Field Development Schematic (12578 bytes)

Norway's Den norske stats oljeselskap AS has commissioned a feasibility study for development of three Norwegian Sea oil and gas fields under a 40 billion kroner ($6.1 billion) program.

Statoil hired Aker Engineering AS, Oslo, to evaluate options to develop Midgard, Smorbukk, and South Smorbukk fields. The study is to be complete by the end of March.

Also off western Europe, Phillips Petroleum Co. U.K. Ltd. plans to duplicate much of the development scheme for a producing field in placing Alison gas field on production in the British North Sea.

NORWEGIAN SEA

Aker will consider fixed rigs, floating platforms, or a combination of the two for development of Statoil's Midgard, Smorbukk, and South Smorbukk fields. The study also will decide whether development should be centered on one field or be more widespread.

Statoil and Norwegian independent Saga Petroleum AS agreed to an asset exchange across the fields in late last year, which placed the three fields under Statoil as sole operator (OGJ, Oct. 31, 1994, p. 20).

The fields hold combined reserves estimated at 7 tcf of gas, 158 million bbl of oil, and 390 million bbl of condensate. Their development is seen as key to opening untapped gas resources off Central Norway.

Statoil last year placed a massive order for steel to be used in manufacturing gas pipelines. Part of this order was for a potential 600 km pipeline to connect Norwegian Sea gas fields with the North Sea export grid (OGJ, Dec. 12, 1994, p. 32).

NORTH SEA

The U.K. Department of Trade & Industry gave Phillips the green light to develop Alison field and nearby Kx gas field operated by Conoco (U.K.) Ltd. as a unit.

DTI estimated reserves for Alison and Kx at a total 77 bcf. First gas is slated for October 1995 at a combined average 50 MMcfd. Of this, about 30 MMcfd will come from Alison and 20 MMcfd from Kx.

Block 49/11a Alison and Block 49/16 Kx will be developed using a subsea template from which gas will be sent to a recently installed riser platform on Conoco's Lincolnshire Offshore Gas Gathering System (Loggs).

Alison's template will be controlled and supplied with methanol from Phillips' Block 48/15a Audrey B platform.

Alison development will be similar to development of nearby Ann field, placed on stream in 1993. A subsea tee was built into a fine linking Ann to Loggs in anticipation of development of Alison.

Phillips and Conoco will each drill a development well using a shared rig, then connect their structures to the subsea manifold. A third well slot on the manifold will be kept open for further drilling needs.

"Template design, drawings, and specification for Alison will be exactly the same as used for Ann, resulting in considerable cost savings," said Mike Spaven, Phillips' project development manager.

Development cost for Alison was not disclosed.

Alison interests are operator Phillips 42.22%, Agip (U.K.) Ltd. 15%, and Fina Exploration Ltd. 42.78%. Kx interests are Conoco 50% and BP Exploration Operating Co. Ltd. 50%.