SAGA EYEING MIDGARD FIELD DEVELOPMENT

Saga Petroleum AS, Oslo, has recommended Midgard gas/condensate field on the Haltenbanken off Central Norway be developed and linked to the North Sea gas transportation infrastructure with a 410 mile, 32 in. gas pipeline. If Saga's partners and Norway's government approve the project, first Haltenbanken gas could be delivered in 1995-96, probably for the U.K. market. Saga started plans for Midgard development by declaring commercial the 4.02 tcf field. The field also has 94 million bbl

May 13, 1991

2 min read

If Saga's partners and Norway's government approve the project, first Haltenbanken gas could be delivered in 1995-96, probably for the U.K. market.

Saga started plans for Midgard development by declaring commercial the 4.02 tcf field. The field also has 94 million bbl of condensate.

Saga's partners in the project-Den norske stats oljeselskap AS (Statoil), Neste Oy, Norsk Hydro Produksjon AS, Norske Agip AS, and Deminex AS--have 4 months to back the project. That gives Saga until October or November to present a new development plan to Norwegian authorities.

Saga currently is considering installing a single concrete platform in 885 feet of water in the field, which underlies Blocks 6507/11 and 6407/2.

The platform would cost 11 billion kroner ($1.64 billion) with another 6 billion kroner ($895 million) for a pipeline from Midgard to Frigg field in the North Sea.

If partner and government approval are forthcoming, work on the project would begin in spring 1992 to meet a targeted start-up in 1995-96. Saga also needs customers for the 775-870 MMcfd of gas available from the field.

And it is banking on the Norwegian government to opt for Haltenbanken gas to supplement North Sea supplies in meeting a new contract to supply U.K. electric power supplier National Power with about 193 MMcfd from the mid-1990s and British Gas plc, which is currently negotiating to buy an average of 483 MMcfd from Norway about the same time.