Det norske submits Froy field development plan

Det norske oljeselskap ASA has submitted a plan for development and operation (PDO) for the Frøy field to the Norwegian Ministry of Petroleum and Energy, with support from its partners in production license (PL) 364.

Offshore staff

OSLO -- Det norske oljeselskap ASA has submitted a plan for development and operation (PDO) for the Frøy field to the Norwegian Ministry of Petroleum and Energy, with support from its partners in production license (PL) 364.

This is the first time in 12 years that an independent Norwegian oil company has submitted a PDO, according to Det Norske. Recoverable reserves from the Frøy field are estimated at 56 MMbbl, with an initial production rate of about 28,000 b/d.

Det norske has already entered into a Heads of Agreement with Teekay Petrojarl AS to lease a jackup production unit for the field. The contractor will build and operate the production unit, which is estimated to start producing on the Frøy field during 3Q 2012. The ten-year lease and operation contract has an optional extension for another five years (five times one year).

Frøy will be developed with a jackup platform containing drilling and production facilities. Oil will be stored in a tank located on the seabed prior to offloading to shuttle tankers for transport to the market. The produced gas, together with water, will be injected into the reservoir as pressure support, thus enhancing recovery. The field will be produced with eight wells, the company says

09/16/2008

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