Page 13 - EurOil Week 19 2022

EurOil PROJECTS & COMPANIES EurOil

Conoco files $1.2bn plan for Eldfisk North

NORWAY CONOCOPHILLIPS and its partners have sub- “It is a perfect example of how we manage
mitted a NOK10.5bn ($1.2bn) plan to develop to utilise spare processing and transporta-
The project will be the Eldfisk North project in the North Sea to tion capacity in existing infrastructure,” he
tied back to the main Norwegian authorities, the US major reported said. “In addition, I’m pleased to see that the
Eldfisk field. on May 9. project will reduce overall greenhouse gas
The project will recover between 50 and emissions intensity from the field and still
90mn barrels of oil equivalent, with first oil due increase resource recovery and value creation
in 2024. Comprising a 14-well subsea produc- in a mature area.”
tion system, it will be tied back to the main Eld- The project will benefit from tax incentives
fisk field, in production near Norway’s maritime introduced by Norwegian authorities at the
border with the UK since the late 1970s. height of the coronavirus pandemic, offered
ConocoPhillips serves as operator with a to any projects whose development plans are
35.1% interest, while TotalEnergies has 39.9%, filed by the end of 2022. The subsequent sharp
Var Energi has 12.4%, Equinor 7.6% and Petoro recovery in oil and gas markets since COVID-
5%. 19 restrictions were lifted has added further
“The Eldfisk North project will utilise spare momentum to development of Norway’s oil and
processing and transportation capacity in the gas reserves.
existing infrastructure, reduce overall green- Norway expects to receive “a large number” of
house gas emissions intensity and increase development plans this year, Petroleum Minister
resource recovery and value creation in the Eld- Terje Aasland told Reuters on the sidelines of an
fisk field,” ConocoPhillips’ president for Europe, energy conference this week. “This is an exciting
the Middle East and North Africa, Steinar Vage, year, and shows that the oil tax package is yield-
commented. ing results.”
The project will generate 4,000-4,500 jobs, Among the plans expected to be filed are
with over 80% of contracts’ value due to go to one for Equinor’s Wisting discovery in the
Norwegian businesses, the US major said. Arctic Barents Sea, which will become the
Var Energi vice president Orjan Jentoft com- world’s northernmost oilfield. Wisting will cost
mented separately that “the development of NOK75bn to develop, according to Equinor. It is
Eldfisk North is a perfect fit with our long-term estimated to hold over 490mn barrels of oil and
growth plans in the North Sea.” 3.9 bcm of natural gas. ™

UKOG secures full permit for Horse Hill

UK SHARES in London-listed junior UK Oil & Gas It is also permitted to flare natural gas at the site,
(UKOG) soared on May 5 after the UK’s Envi- but not at a rate of more than 10 tonnes per day,
The field was ronment Agency (EA) granted the company a and only until it can be demonstrated that flaring
discovered near full production permit for its Horse Hill asset. is no longer the best available technique through
Gatwick airport in UKOG’s shares were up 23% in the first few a cost benefit analysis.
2014. hours of trading, after the project finally received Horse Hill, which is 86%-owned by UKOG,
the all-clear after two and a half years of delays. was discovered in Surrey in north England
The permit enables UKOG to use one of its wells in 2014, near Gatwick airport. It was initially
to reinject wastewater production into oil-bear- dubbed the Gatwick Gusher, as the discovery
ing rocks in order to boost recovery. This will well produced higher flow rates than any other
reduce operating costs and remove the need for onshore wildcat in the UK.
tankers. Planning approval was granted in September
“This long-awaited EA permit finally enables 2019 for Horse Hill to flow at up to 3,500 barrels per
UKOG to return Horse Hill’s produced saline day over a 25-year period from six wells. In March
formation water back to the oil-bearing Portland 2020, the Oil and Gas Authority approved the field’s
rocks where it originated, lowering operating costs development plan, although it has taken until now
per barrel, removing HGV tankers from congested for a full production permit to be issued.
roads and reducing the field’s overall carbon foot- “An environmental permit sets out stringent
print,” UKOG CEO Stephen Sanderson said in a conditions that all oil and gas sites must adhere
statement. “The ability to reinject makes both envi- to,” an EA spokesperson commented. “We will
ronmental and economic good sense.” not issue an environmental permit for a site if
The permit will also enable UKOG to drill we consider that activities taking place will cause
four new boreholes in addition to the two already significant pollution to the environment or harm
built. The company will be able to run 90-day to human health.” The issue of the permit follows
well tests at these extra wells before either adding public consultations that took place in March-
them to the production flow or abandoning tem. April 2021 and March 2022. ™

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