DONG looks to re-enter Svane

DONG Energy and its partner Bayerngas will drill an appraisal well on the high pressure, high temperature Svane field in the Danish North Sea.

Offshore staff

COPENHAGEN -- DONG Energy and its partner Bayerngas will drill an appraisal well on the high pressure, high temperature Svane field in the Danish North Sea.

Svane, discovered by previous operator ConocoPhillips, was transferred to DONG with a package of other Danish sector interests in 2007. The field is thought to be one of Denmark’s largest undeveloped offshore resources, but also one of its most technical demanding.

According to DONG, although a previous appraisal well in 2001 indicated the presence of a large gas reservoir, technical problems encountered during drilling raised doubts over the findings.

The current license partners have decided to resume drilling in an attempt to determine the volumes and a method for extracting the gas, which is housed at a sub-surface depth of 6,000 m (19,685 ft) – deeper than any other field on the Danish shelf.

Depending on the drilling results, DONG expects the well to cost DKK 0.6-0.9 billion ($113-169 million). Detailed planning for the appraisal program will be performed this year, after which the partners will firm up timing for the well.

“If the appraisal drilling meets our expectations,” says DONG’s executive VP Soren Gath Hansen, “the field will contribute substantially to the future security of supplies. Furthermore, it opens perspectives for future exploration of this type of technically challenging field on the Danish shelf.”

01/27/2010

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