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Ormen Lange Gas Field Now Has 6 Wells Online – Shell

CNNMoney.com

October 31, 2008: 11:07 AM EST

(Updates with detail, comments.)

OSLO -(Dow Jones)- Norway’s giant Ormen Lange gas field is now producing gas from six wells, after three new wells were brought online earlier this month, a spokeswoman for operator Royal Dutch Shell PLC (RDSA.LN) said Friday.

“We’re ramping up. We have introduced three more producing wells, so the total number is six,” said Shell spokeswoman Kitty Eide.

The three earlier wells at Ormen Lange had a maximum capacity of around 10 million cubic meters a day each, so the new wells, which came online during October have bolstered the field’s output capacity to above 30 million cubic meters a day, she confirmed. Eide said it is too early to say what their exact capacity is as they are still ramping up.

“The added production from the new wells is still quite low, we’re turning them up slowly, performance will be tested over time,” Eide said.

She also said Ormen Lange is on target to reach its nameplate capacity of 70mcm/day by the end of 2009.

“We’re drilling new wells as we speak. We currently have one drillship and a rig on the field,” Eide said, adding Shell is “on plan when it comes to ramp up new wells and drilling.”

The gas field is located in the More Basin in the southern Norwegian Sea. Gas is piped onshore to Nyhamna processing plant before being shipped through the Langeled pipeline to Sleipner and from there to continentalEurope or the U.K.

Shell owns a 17.04% stake in Ormen Lange, StatoilHydro ASA (STO) has a 28.91% stake, ExxonMobil (XOM) 7.23%, Petoro 36.48% and DONG A/S 10.34%.

Company Web site: http://www.shell.no

-By Elizabeth Cowley, Dow Jones Newswires; +47 22 20 10 58; [email protected] dowjones.com

(END) Dow Jones Newswires

  10-31-08 1107ET
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