Page 11 - EurOil Week 30 2021

EurOil POLICY EurOil

Norwegian shelf activity

high in 2021: NPD

NORWAY ACTIVITY on the Norwegian Continental is very supportive of exploration work, allowing
Shelf (NCS) has been high this month, sup- operators to deduct the majority of expenses
Eight discoveries were ported by a rally in oil and gas prices, the Nor- from their tax base.
made during the six- wegian Petroleum Directorate (NPD) reported Looking ahead, the NPD said the shelf would
month period. on July 7. see a wave of new projects, with as many as 50
Eight discoveries were made during the six- due to reach final investment decisions (FIDs)
month period, with a combined mid-range by the end of next year. Combined, they are tar-
resource estimate of more than 400mn barrels geting one and a half times more reserves than
of oil equivalent (boe). The largest was made at are found at Johan Sverdrup, with NOK380bn
Dvalin Nord in the Norwegian Sea by Germa- ($42.8bn) of investment.
ny’s Wintershall Dea. Some finds were also in the Norwegan oil and other liquids supply aver-
North and Barents seas. aged 1.883mn barrels of oil equivalent per day
According to the NPD, the discoveries were (boepd) during June, up 2% month on month
made in mature areas near other fields and infra- and 1.4% year on year, largely thanks to further
structure, making their development potentially growth at the giant Johan Sverdrup project. But
low-cost. Some 17 wildcat wells were drilling in the production rate still came in at 6.3% below
January to the end of June, meaning there was a the forecasted level.
47% success rate in drilling. The country’s gas extraction was down 5.8%
Exploration is poised for a recovery in 2021 m/m and down 5.5% y/y at 264.3mn cubic
following spending cuts in 2020, with the NPD metres per day in June, owing to technical prob-
forecasting that 40 exploration wells will be lems and maintenance work at some fields. The
drilled this year. This compares with 31 in 2020, Snohvit gas field in the Barents Sea remains
which was still a comparatively high figure con- offline as a result of a fire that broke out at the
sidering the circumstances. Norway’s tax regime Hammerfest LNG plant last autumn. ™

PROJECTS & COMPANIES

Harbour warns of Tolmount launch delay

UK UK oil producer Harbour Energy, formed from Following the setback, Harbour said it had
the merger of Chrysaor and Premier, has delayed reduced its pro-forma production guidance
Harbour warned that it first gas from the Tolmount field in the North for the year to 185,000-195,000 boepd, and its
no longer anticipated Sea after encountering issues with the platform’s guidance on a reported basis to 170,000-180,000
first gas until around electrical systems. boepd. Previously the company was anticipat-
the end of the year. A final investment decision (FID) was taken ing pro-forma production of 200,000-215,000
on Tolmount in the UK North Sea in 2018 and boepd and reported basis output of 185,000-
Harbour was expecting to launch production 200,000 boepd.
this month. In an update on July 21, though, The revisions also reflect a delayed restart at
Harbour said that during commissioning and TotalEnergies’ Elgin-Franklin complex follow-
testing of Tolmount’s platform it had identified ing summer maintenance work.
issues with certain offshore electric systems. Tolmount was originally due on stream
Investigations are underway. as well in the fourth quarter of 2020 but was
Harbour warned that it no longer anticipated delayed as a result of coronavirus (COVID-19)
first gas until around the end of the year. restrictions. It will use the Humber gathering
Harbour operates Tolmount with a 50% system to deliver its gas to the Easington onshore
interest, while South Korea’s Dana owns the gas terminal.
remaining 50%. The UK firm had been count- Premier also discovered Tolmount East in
ing on the gas field to boost its output during October 2019 and had hoped to take an FID on
the remainder of the year, netting 20,000- that project in the third quarter of this year. It did
25,000 barrels of oil equivalent per day at full not say whether the decision would be delayed in
capacity. light of Tolmount’s postponement. ™

Week 30 29•July•2021 www. NEWSBASE .com P11