By OGJ editors
HOUSTON, Mar. 23 – The Netherlands awarded the 104.6-sq-km Zuid-Friesland III production license that contains two undeveloped gas discoveries to a group of companies for 25 years.
Recipients of the award are Nederlandse Aardolie Maatschappij BV, Total SA, Petro-Canada, and Dyas Petroleum.
Under separate prior agreements, Northern Petroleum Nederland BV will acquire NAM’s and Dyas’ working interests and assume operatorship. After 40% participation by Energie Beheer Nederland BV, NPN’s working interest is 44.34%. The transfers are subject to the usual government consent.
Oppenhuizen-1, drilled in 1972, discovered gas in Permian Zechstein 2 carbonate and tested at 15 MMscfd. It is suspended. Woudsend-1, drilled in 1987, discovered gas in Zechstein carbonate and was not tested. Unaudited combined gas in place is 107 bcf, estimated 60% recoverable.
NPN will develop each field according to the agreements and will receive out of cash flow from production 100% payback of its costs plus an uplift. After payback, NPN, NAM, and Dyas will split operating cash flow under a profit share arrangement.
