NEWS More North Sea fields marked for development

Operators have unveiled development plans for several more fields in the North Sea off Norway and the U.K.

Among the latest projects:

Esso Norge AS won Norwegian government approval to develop its Block 25/11 Balder oil discovery using a floating production, storage, and offloading (FPSO) vessel.
Saga Petroleum AS, Oslo, unveiled a 3 billion kroner ($460 million) development plan for its Varg discovery, which lies in Norwegian Block 15/12, with first oil due in second quarter 1998. The plan calls for a wellhead platform and production ship to produce and process oil prior to export by shuttle tanker.
Norway's Den norske stats oljeselskap AS was preparing to drill the first production well in Yme field off Norway now that conversion of the Maersk Giant jack-up is complete after delays at the construction yard.
Amoco (U.K.) Exploration Co. will develop its Arkwright oil discovery in U.K. North Sea Block 22/23a, at an estimated cost of 57 million ($87 million).
BP Exploration Operating Co. Ltd. installed a heavy duty jack up production platform in Harding field off the U.K. Jan. 30, having waited since September for the required 5 day weather window.

Balder

Esso's Balder field, a 1974 discovery, holds estimated reserves of 170 million bbl of oil. Its complex reservoir and distance from infrastructure have delayed development.

The development program, expected to cost 5 billion kroner ($770 million), will use the SPU380 vessel under construction at Far East Levingston Shipyard in Singapore.

The field is due on stream in early 1997 and is expected to produce about 75,000 b/d of oil at plateau through 15 subsea wells tied back to the ship. The vessel can store 380,000 bbl of oil and will be unloaded by shuttle tankers.

Smedvig AS, Stavanger, will begin drilling development wells this spring using the West Alpha semisubmersible rig. Water depth on the block is 125 m.

Esso let contracts to Norway's ABB Global Engineering AS of Asker and Coflexip Stena Offshore (Norge) AS of Lysaker for subsea systems and to Offshore & Marine AS at Sandnes for installation of topsides equipment.

Varg

Saga views its Varg plan as a model for development of other small North Sea fields that are remote from infrastructure.

Preparing for Varg development, Saga has let a:

1.5 billion kroner ($230 million) contract to Far East Levingston Shipbuilding Ltd., Singapore, to build the production ship;
250 million kroner ($38 million) contract to Aker AS, Oslo, and Saipem U.K. Ltd., Aberdeen, for construction and installation of a wellhead platform.
130 million kroner ($20 million) contract to Coflexip Stena Offshore Norge AS, Oslo, to build and install field pipelines and risers.

Also, a letter of intent went to Neddrill Nederland BV, Rotterdam, for lease of a jack up rig to drill production wells in the field.

Varg is the new name for a field formerly called Fenris. Saga acquired the field from Statoil in part exchange for Statoil taking over from Saga operatorship of Aasgard fields development in the Norwegian Sea.

Varg holds reserves estimated at 5.2 million cu m at present, although Saga expects the figure to be hiked to 9.1 million cu m of oil after further drilling.

Saga has made its investment decision based on the higher reserves estimate. It says the likelihood of proving the incremental reserves is high, although the field's structures are complex with many faults.

The production vessel will be able to produce 9,000 cu m/day of oil and 1.5 million cu m/day of associated gas. Gas will be used to generate electricity on board the vessels and platform and for reinjection.

Aker said the platform design will be based on an innovative idea of Saipem's that capitalizes on the lifting characteristics of its S7000 crane barge.

The 104 m high monotower platform will be built in a vertical position at Aker's Verdal yard, loaded out by the S7000 at the yard, and transported vertically to the field.

Verdal development work will begin this summer, with installation of the platform scheduled for summer 1997. Varg partners are operator Saga 35% and Statoil 65%.

Yme

Statoil's Block 9/2 Yme field holds estimated reserves of 36 million bbl of oil, as well as 11 million in the satellite East Beta reservoir. The Maersk Giant will produce oil into a storage tanker for export by shuttle tanker to Statoil's Mongstad refinery.

In late January Statoil reported it was mobilizing a drilling crew for the rig and expected the well to take about 30 days, after which oil production is to begin immediately.

A water and gas injection well will be drilled after the producer. The Deepsea Bergen semisubmersible rig is due in the field in late February to drill two wells into the East Beta reservoir.

East Beta is to be developed through two wells tied back via a subsea template to the Maersk Giant. East Beta is on schedule to begin production in late May or early June.

Maersk Giant can produce 50,000 b/d of oil. Statoil expects full capacity to be reached once Yme and its East Beta satellite are on production.

Arkwright

Development of Arkwright field will be Amoco's first subsea project in the U.K. North Sea, involving tieback of three wells via a subsea manifold to its Arbroath platform 7 miles away.

Arkwright is to begin production in late 1996, with flow anticipated to amount to 12,000 b/d of oil. Three production wells will be used at first, although the manifold will have room to handle a water injector later.

Wood Mackenzie Consultants Ltd., Edinburgh, estimates Arkwright re- serves at 10 million bbl of oil.

Arkwright's oil will be shipped to Cruden Bay terminal, north of Aberdeen, with oil being sent from the unmanned Arbroath platform on to Amoco's Montrose platform, which is linked to the Forties oil pipeline.

Amoco has let contracts worth a total 13 million for Arkwright.

They include awards to Wood Group plc, Aberdeen, to modify the Arbroath platform to take Arkwright oil; Aker Oil & Gas Technology plc, Aberdeen, for detailed engineering; and Kvaerner FSSL Ltd., Aberdeen, for subsea controls.

Allseas Marine Contractors SA of Chatel-St. Denis, Switzerland, will lay 27 miles of 2 in., 4 in., and 6 in. pipelines and provide diving support. Water depth in the field is 310 ft.

Arkwright license partners are operator Amoco 30.77%, Amerada Hess Ltd. 28.2%, and Enterprise Oil plc 41.03%.