Watching the World Norway seeks key to Barents Sea

With David Knott from London [email protected] The Barents Sea off northern Norway has proved an enigma as far as hydrocarbon reserves are concerned. There has been a number of gas discoveries, the largest of which is Snohvit, with estimated reserves of 3.6 tcf, and one promising oil strike, which yielded very little oil on test (OGJ, Feb. 28, 1994, p. 30). Since then Den norske stats oljeselskap AS, Norsk Hydro AS, Saga Petroleum AS, Amoco Norway AS, Elf Petroleum Norge AS, and Mobil

July 29, 1996

3 min read

The Barents Sea off northern Norway has proved an enigma as far as hydrocarbon reserves are concerned.

There has been a number of gas discoveries, the largest of which is Snohvit, with estimated reserves of 3.6 tcf, and one promising oil strike, which yielded very little oil on test (OGJ, Feb. 28, 1994, p. 30).

Since then Den norske stats oljeselskap AS, Norsk Hydro AS, Saga Petroleum AS, Amoco Norway AS, Elf Petroleum Norge AS, and Mobil Development Norway AS have pooled seismic and well data to further exploration as a group .

Oil quest

Henk Duyverman, Statoil's Barents Sea exploration manager, said companies have found a lot of gas, but this will be difficult to bring to market without a liquefied petroleum gas solution.

Duyverman said there have been eight gas finds and six oil finds resulting from 53 wells drilled to date. These have reserves estimated at 2.48 billion bbl of oil equivalent (BOE), of which 90% is gas and 10% oil.

"We expect the remaining undiscovered reserves are mainly oil," said Duyverman, "and these are the plays we are after."

Norway's Ministry of Industry & Energy is expected to ask soon for nominations for blocks to be awarded in its planned Barents Sea round.

License applications are then expected to be required for the fourth quarter, with award of licenses in early 1997.

The Barents group plans to apply for acreage in the new round and is preparing for block nominations to government.

"At first we thought there would be no competition," said Duyverman, "but now a group including Neste Oy and Enterprise Oil Norwegian AS appears to be interested and also maybe Phillips Petroleum Co. Norway."

Duyverman said five areas are likely to be of interest to applicants in the upcoming licensing round:

Soervestnaget basin, which has similar geology to the U.K.'s West of Shetland area with Mesozoic, Paleocene, and Pliocene plays.
Hammerfest/Tromsoe basins, where most of the current discoveries lie, which are "mainly gas prone, but gas is not top priority."
Finnmark platform near the coast, of which a great area is covered by carbonate rocks, but "Only two wells have been drilled here, including the 1994 oil discovery. Carbonates have not been much probed in Norway."
Loppa high, north of Hammerfest basin, said to be a promising area with only a few wells drilled.
Nordkapp basin, "with subsalt plays, completely new for Norway," where Statoil's next Barents Sea well is planned later this year.

Last chance

Statoil and Saga plan to drill wells on existing acreage this year.

Statoil's well is said to be critical for eastern Barents Sea exploration, as is Saga's planned Loppa high area well for western Barents Sea plans.

"The forthcoming licensing round is the last chance for the Barents Sea," said Duyverman. "We reckon there is potential for discoveries amounting to 4 billion BOE of which 54% is oil and 46% gas.

"We expect modest discoveries; we are not looking for giants. The first question is how big an area will government make available. We are very hopeful after the positive 15th licensing round."