By OGJ editors
HOUSTON, Mar. 26 -- Hess Denmark ApS has let a front-end engineering and design contract for the third phase of development of South Arne oil field in the Danish North Sea.
Granherne, a consulting subsidiary of KBR, will provide services for two wellhead platforms, one bridge-linked to the wellhead, processing and accommodation now on the field, and the other 2.5 km away.
South Arne recently has been producing 18,700 b/d of oil and 26.2 MMscfd of gas with 11,500 b/d of water. Oil flows into an 87,000-cu-m storage tank on the seabed for offloading into a tanker. Gas flows through a pipeline to Nybro on the west coast of Jutland.
The first stage of third-phase development involves drilling of two oil production wells. The Maersk Resolute jack up is on the field now.
Discovered in 1969 and on stream since 1999, the field produces from Cretaceous Danian chalk through 12 wells and has seven water-injection wells. It lies in 60 m of water on Blocks 5604/29 and 30.
Through 2008 it had produced 18.92 million cu m of oil, 4.65 billion cu m of natural gas, and 10.19 million cu m of water.
The Danish government reported South Arne reserves at the start of last year of 10.3 million cu m of oil and 5 billion cu m of gas.
The new wells are expected to boost ultimate recovery by 1.11 million cu m of oil and 330 million cu m of gas.
Hess Denmark, co-operator with DONG E&P AS, holds a 57.47875% interest in the license. Dong E&P holds a 34.375% interest. Other interests are Altinex Oil Denmark AS 6.5625% and Danoil Exploration AS 1.58375%.
