Page 18 - EurOil Week 42

EurOil PROJECTS & COMPANIES EurOil

Norway clears Dvalin

field for launch

NORWAY GERMANY’S Wintershall Dea has been given Directorate (NPD). Wintershall Dea previously
the all-clear from regulators to begin production said it expects production to commence in either
Wintershall Dea expects at the Dvalin gas field in the Norwegian Sea. November or December.
to start production in Dvalin, situated in the Haltenbanken area, “The development of Dvalin is a text-
either November or will serve as a tie-back to Equinor’s floating book example of good utilisation of existing
December. Heidrun platform some 15 km north-west, in infrastructure in the area,” the NPD said in a
operation since 1995. It will feature four wells: statement.
two targeting the field’s eastern flank and two Wintershall Dea is continuing exploration in
exploiting its west. Drilling began in August the area, in the hope of finding more gas that can
2019 and is now complete. be recovered. Last month it awarded a contract
Condensate from Dvalin will be delivered to Odfjell Drilling to sink at least four operated
onshore to a refinery using tankers, while gas wells in 2021, including the Dvalin North bore-
will be directed via the Polarled pipeline to the hole. It will also drill the Bergknapp well in the
Nyhamna onshore plant. Norwegian Sea and at least two infill wells at the
Wintershall Dea estimates it can recover Vega field, which is already in production.
some 18bn cubic metres of gas from Dvalin in Wintershall Dea operates Dvalin with a 55%
total. The project’s investment cost is NOK11bn interest, while Norway’s Petoro has 35% and Ita-
($1.2bn), according to the Norwegian Petroleum ly’s Edison 10%. ™

UKOG, Egdon cede UK

onshore licence

UK JUNIOR explorers UK Oil & Gas (UKOG) drilling. The dispute was finally won by Egdon
and Egdon Resources have ceded the PEDL143 and its partners in January, clearing a path for the
UKOG has almost licence in Surrey in south-east England, after 2mn-barrel field’s development.
a 68% stake in the a study found that drilling at the site would be Egdon is also considering drilling options
licnece. “neither technically viable or economically at Biscathorpe and North Kelsey. Offshore, it
feasible.” is preparing to acquire a 3D seismic survey at
“Consequently, UKOG and its partners have the Resolution and Endeavour gas discover-
now relinquished their interests in the licence,” ies, where it has partnered with Royal Dutch
UKOG said. “It remains a great disappointment Shell.
to the company that the licence’s former oper- UKOG also said that Surrey County Council
ator, Europa Oil & Gas, whilst in possession of would decide on November 27 whether to grant
planning consent, failed to drill the prospect it planning consent at the Loxley gas asset. The
from the Holmwood site, around 1 km from the meeting will be a rerun of a consultation that
target.” took place this summer. The council provided
UKOG had almost a 68% stake in the licence, consent but decided to rerun the decision after
while Egdon held just over 18%. Egdon’s manag- receiving external advice and over 100 other for-
ing director, Mark Abbott, said giving the licence mal complaints.
up would allow it to focus its resources on core Loxley is situated in UKOG’s 100%-con-
near-term priorities. trolled PEDL234 licence, estimated to comprise
The company is moving towards produc- 960mn cubic metres in mean- and 1.53bn cubic
tion at the Wressle field this quarter. Wressle’s metres in high-case reserves.
development has been held back by a three-year This would place Loxley as “the second larg-
court battle with the North Lincolnshire Coun- est gas accumulation ever discovered and flow
cil, which had denied planning permission for tested in the UK onshore,” UKOG said. ™

P18 www. NEWSBASE .com Week 42 22•October•2020