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Reuters: BP files $5 billion Norwegian Sea oil and gas plan

Fri Jun 29, 2007 11:07 AM BST

OSLO, June 29 (Reuters) – Britain’s BP (BP.L: Quote, Profile , Research) delivered to Norwegian authorities on Friday a $5 billion plan for development and operation of the Skarv and Idun oil and gas fields in the Norwegian Sea, the company and officials said.

The production start-up is planned for the third quarter of 2011, BP’s Norwegian subsidiary, BP Norge, said in a statement.

The total recoverable resources are estimated at 106 million barrels of oil and condensate and 48.3 billion standard cubic metres of rich gas, BP said.

Oil production capacity is planned to be 85,000 barrels per day and gas output 15 million standard cubic metres per day, the company said. The development consists of the Skarv gas and oil field and the Idun gas field.

Additional resources have been identified in the area, and those can be linked in to the Skarv Idun production facilities at a later stage, BP said.

The fields will be developed with a large production vessel, subsea wells and an 80 km (50 mile) gas export pipeline connecting to the Aasgard Transport System, at a total cost of around 30 billion Norwegian crowns ($5.08 billion), BP said.

BP is operator and has a 23.8 percent interest. Its partners are Norway’s Statoil (STL.OL: Quote, Profile , Research) with 34.1 percent, Royal Dutch Shell (RDSa.L: Quote, Profile , Research) with 28.1 percent, ExxonMobil (XOM.N: Quote, Profile , Research) with 11.9 percent and Norsk Hydro (NHY.OL: Quote, Profile , Research) with a 2.1 percent stake.

The Skarv and Idun fields are about 200 km offshore in the Norwegian Sea, between the Norne and Heidrun fields in water depths of between 350 and 450 metres.

The fields are production licenses PL212, PL262 and PL159.

“The Skarv and Idun project is important for further development of petroleum activity in the Norwegian Sea,” Petroleum and energy Minister Odd Roger Enoksen said in a statement.

“The fields will contribute to strengthen the existing infrastracture in Nordland county in a good way and will pave the way for further development of industry along the coast,” he said.

© Reuters 2007. All Rights Reserved.

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