Page 16 - EurOil Week 48 2020

EurOil POLICY EurOil

Danish reservoir cleared to store CO2

DENMARK DENMARK has taken a step forward in its plan The eventual ambition is to store as much
to store CO2 offshore, with Norwegian certifi- as 3.5mn tpy of CO2 before 2030, collected
Project Greensand is a cation body DNV GL confirming that a subsea from Danish industry. But Maersk noted that
joint venture between reservoir in the Dutch North Sea is fit for the as is the case with many carbon capture and
Ineos, Wintershall and purpose. storage (CCS) projects underway in Europe,
Maersk. Under Project Greensand, the depleted Nini Greensand will need a funding model to start
West oilfield in Danish waters will store up to operations.
450,000 tonnes per year (tpy) of CO2 for a dec- The North Sea has emerged as a hotbed for
ade beginning in 2025. Nini West is operated by CCS development, as its surrounding countries
petrochemicals group Ineos with a 53% stake, look to subsea structures as a means of decar-
while German gas producer Wintershall Dea bonising their economies.
serves as its partner. One of the most notable projects is Northern
Project Greensand is a joint venture between Lights in Norway, which initially aims to store
Ineos, Wintershall and Danish rig-owner 1.5mn tpy of CO2, rising to 5mn tpy under a
Maersk. The Geological Survey of Denmark and second stage. Another venture is Porthos in the
Greenland (GEUS) is also serving as a research Netherlands, which strives to store 2.5mn tpy
partner. of CO2 from industries in the Rotterdam area.
“We are proud to have achieved this first Projects are also underway at industrial clusters
milestone for Project Greensand,” Wintershall in northern England and Scotland.
said in a statement. “The certification means we While these projects are currently funded on
can be confident that the reservoir is suitable for a case-by-case basis, the hope is that policies will
safe and long-term storage. Now we will work be introduced to spur the wider-spread deploy-
with our project partners to gain knowledge and ment of CCS, including an increase in carbon
drive the project forward.” tax. ™

PROJECTS & COMPANIES

Sea Lion farm-out process extended

in light of Premier-Chrysaor merger

UK THE deadline for striking a farm-out deal at the said. “We believe that the opportunity to invest
Premier Oil-operated Sea Lion project off the in a 500mn barrel fully appraised and engineered
Sea Lion is a 500mn Falkand Islands has been pushed back in light of project with material additional upside at this
barrel oil project off the the company’s planned merger with fellow UK point in the cycle presents a compelling oppor-
Falkland Islands. producer Chrysaor. tunity, and one which would lead us towards
Premier and its Sea Lion partner Rockhop- unlocking the value within the project long-
per signed a non-binding heads of terms agree- awaited by all stakeholders.”
ment in January with Israel’s Navitas Petroleum, Under the deal, Premier would retain a
proposing to give the latter a 30% interest in the 40% interest in Sea Lion while Rockhopper
500mn-barrel oil project. would retain 30%. The partners are also in
Rockhopper then issued an update in March, talks with the Falkland Islands government
saying it was confident the deal would still go to extend the Sea Lion licences, due to expire
ahead despite the COVID-19 pandemic and the in May 2021.
resulting uncertainty in the global oil market. The plan is to develop the North Falkland
However, the exclusivity period for negoti- basin field over three phases, the first of which
ations has now been extended from December will use a floating production storage and off-
30 this year to September 30 2021, Rockhopper loading (FPSO) unit similar to one deployed at
revealed on November 30. The company said it Premier’s Catcher field in the UK North Sea.
remained “committed” to the farm-in, adding Premier and Chrysaor hope to complete
that its share of project costs would continue their merger in early 2021, establishing the
to be borne by Premier during the extension largest independent oil and gas producer in the
period. UK North Sea. In other project developments,
“We will work closely with all stakeholders Premier said in mid-November it was in “final
over the coming months to maximise the chance negotiations” with contractors ahead of taking
of securing the farm out and project sanction of a final investment decision at its Tolmount East
Sea Lion,” Rockhopper CEO Samuel Moody field in the southern North Sea. ™

P16 www. NEWSBASE .com Week 48 03•December•2020