The Norwegian Petroleum Directorate's report for the first quarter of 2009 provides an overview of oil and gas production, new discoveries, new development plans and drilling activity.

Production on the Norwegian continental shelf in the first quarter of 2009 was stable, even slightly exceeding forecasts. There was more drilling activity in the first quarter of this year than in the corresponding period in 2008.

The authorities have received two new plans for development and operation (PDOs). Six new discoveries were made on the shelf in the first quarter.

Petroleum Production Production of oil rose from 2.135 million barrels per day in the first quarter of 2008 to 2.142 million barrels per day in the first quarter of this year. If condensate and natural gas liquids (NGL) are included, there was a marginal increase in daily liquid production to 2.51 million barrels.

Gas production continues to rise. In the first quarter of 2009, 29.8 million standard cubic meters of gas were produced on the Norwegian shelf, while 28 million standard cubic meters were produced in the same period last year.

Total petroleum production from the Norwegian shelf has increased from 64.24 million standard cubic meters of oil equivalents in the first quarter of 2008 to 65.73 million standard cubic meters of oil equivalents in the same period of 2009.

Discoveries Six discoveries were made on the shelf in the first quarter, all of which are considered to be relatively small.

Four of the discoveries were made in the North Sea: 30/11-7 (completion date for well: Feb. 3), 30/8-4 S (Feb. 4), 30/9-22 (Mar. 10), 34/7-34 (Mar. 11).

The two last discoveries were made in the Norwegian Sea: 6608/10-12 A (Jan. 26), 6705/10-1 (Mar. 18).

Development Plans On February 18, the authorities received the plan for development and operation (PDO) of the Goliat oil field in the Barents Sea, where Eni Norge AS is the operator for the development. The other licensee in the production license is StatoilHydro Petroleum AS. Goliat, which is situated 50 km southeast of the Snohvit field and 85 km northwest of Hammerfest, is the first oil field planned for development in the Barents Sea.

Goliat is a relatively small field. With its recoverable oil and gas reserves of 28 and 8 million cubic meters respectively, Goliat is comparable in size to the Njord field. Total investments for the field amount to about NOK 28 billion. The licensees plan to develop the field using a floating production facility with full processing, storage and loading of oil on the field. The plan also entails that Goliat will receive part of the power it needs from land.

On March 9, the operator, Dong E&P Norge AS, submitted a plan for development and operation (PDO) of the Oselvar oil and gas field in the North Sea, about 250 km southwest of Stavanger. The other licensees are Norwegian Energy Company ASA (15 per cent), Wintershall Norge ASA (15%) and Bayerngas Produksjon Norge AS (30%).

The development concept consists of a trawlable seabed facility with three production wells. Production will be routed in pipelines to the Ula platform for processing.

The licensees plan to commence production from the field in the 4th quarter of 2011. Total investments are estimated at NOK 4.645 billion. Recoverable reserves are estimated at 4.3 billion cubic meters of gas and 3.9 million cubic meters of oil.

Drilling Activity Fifteen exploration wells were completed on the Norwegian continental shelf in the first quarter of 2009, five more than in the same period in 2008. In the first quarter of this year, 22 mobile drilling facilities were in operation on the shelf, compared with 18 during the same period last year.

A total of 39 development wells and six lateral wells were spudded during the three first months of 2009, while 22 development wells and five lateral wells were spudded during the same period in 2008.

Tags: Norwegian Petroleum Directorate