Dana to acquire Petro Canada Netherlands

Dana Petroleum has agreed to acquire Petro Canada Netherlands for around $393 million.

Offshore staff

ABERDEEN, UK -- Dana Petroleum has agreed to acquire Petro Canada Netherlands for around $393 million.

Canadian E&P company Suncor Energy merged with Petro Canada in 2009. The sale is in line with Suncor’s strategy to divest certain upstream offshore interests.

Petro Canada Netherlands is one of the leading offshore players on the Dutch continental shelf. It operates the following hubs: 

• De Ruyter area in the southern sector of the Dutch North Sea, comprising five main blocks in the `P’ quadrant, P08c, P10a, P10b, P11b, and P14a. The chief production asset is the De Ruyter oil and gas field, which produces from three wells drilled from a gravity base structure (GBS) steel platform. The nearby Van Nes (gas) and Van Ghent (oil and gas) discoveries will likely be tied into the facilities shortly under the Medway Development Project. There are numerous other discoveries and prospects in tieback range

• Hanze area in the northern part of the Dutch shelf, comprising the operated F02a and F06b blocks and the non-operated B17a license. The main producing interests here are the Hanze oil field and the F02a Pliocene gas field. Both fields are produced via the Hanze GBS platform. Dana plans to use this installation as a central processing hub for accumulations in the area which could include the Huygens prospect in F06b, set to be drilled late this year or early in 2011. It sees further gas potential in Jurassic and Chalk reservoirs in F02a.

Elsewhere, Petro-Canada Netherlands participates in four blocks in the P15/P18c Area in the southern sector, all operated by TAQA, and in the P15-E unit and the P18a-P18c unit. The P15/P18c Area has been developed through seven platforms and three subsea completions, with gas processed on the nearby P15-D platform. There is potential for field life extensions via workovers and other optimization measures, but TAQA is also thought to be studying re-use options for the platforms, including carbon capture and sequestration.

In the “L” quadrant, Petro Canada Netherlands has interests in six blocks in the L05/L06/L08 area, all operated by Wintershall. A group of Rotliegendes gas fields here are managed from the L8-P4 central processing platform. Wintershall is looking to develop the L06-B high pressure, high temperature discovery via the platform, pending the results of an exploration well.

Dana says the acquisition will provide it with a 31 MMboe of proved and probable reserves and 51 MMboe of proved, probable and possible reserves, with a further 67 MMboe of prospective resources on an unrisked basis.

Petro Canada Netherlands’ net production in the year to April 2010 averaged 12,136 boe/d. Dana plans to retain the existing technical and operational management team, which is based in The Hague.



06/14/2010

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