Det Norske announced today first production from offshore of Norway
Det Norske Oljeselskap ASA, in partnership with Core Energy AS and Lundin Norway AS (ticker: LUPE) announced the production of first oil from their offshore project in the Bøyla field. The Bøyla field is the fourth field in production in the larger Alvheim area.
The company said in its release that total investment in the development of the Bøyla field amounts to approximately NOK 5 billion, or $650 million. Recoverable reserves from the field are estimated at approximately 23 MMBOE. The Bøyla field consists of two horizontal production wells and one water injection well. The expected production rate is in excess of 20 MBOEPD when both wells are in production.
The Bøyla field is tied back to the Alvheim FPSO’s existing infrastructure via a 28-kilometere (approximately 16 miles) pipeline. The processing capacity of the Alvheim FPSO is approximately 150 MBOEPD.
Alvheim FPSO
Source: Det Norske
Bøyla is located in the northern part of the North Sea. The license was awarded to Det Norske in the APA 2004 licensing round, and the first discovery was made in 2009. The plan for development and operation was submitted to and approved by the Norwegian authorities in 2013. Construction of the subsea structures on the Bøyla field commenced in 2013.
Det Norske is the operator for the Bøyla field and holds a 65% interest. Partners Core Energy AS and Lundin Norway AS hold a 20% and 15% interest respectively. Det Norske is based out of Trondheim, Norway.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.
