Gardrofa well bid rejected

Petroleum Safety Authority Norway (PSA) has vetoed Premier Oil Norge’s request to drill a wildcat on the Gardrofa prospect in offshore license, using the Mærsk Guardian.

Offshore staff

OSLO, Norway -- Petroleum Safety Authority Norway (PSA) has vetoed Premier Oil Norge’s request to drill a wildcat on the Gardrofa prospect in offshore license, using the Mærsk Guardian.

The rejection was issued in accordance with Section 58 of Norway’s Framework Regulations. It was based on an assessment of Premier’s organization in connection with Section 10, relating to organization and competence; Section 13, relating to the duty to establish, follow up, and further develop a management system; and also on the Management Regulations - Section 3, relating to management of health, environment, and safety, and Section 21 regarding follow-up.

Premier submitted its application on May 7. PSA conducted an audit of the company’s planning for the drilling operation on May 25. This identified “serious nonconformities related to the company’s deficient management in the planning phase, as well as deficient capacity and competence in the organization.

“The nonconformities are particularly evident in the company’s original choice of well design, location and installation method, and preparations for handling its own third-line preparedness.”

PSA added that Premier had offered to implement improvements, including reinforcing its own organization to better safeguard its responsibility for performing the planned exploration drilling.

However, PSA feels the offer does not sufficiently compensate for the errors and deficiencies pointed out.

Premier pre-qualified as an operator on the Norwegian shelf in January 2007.

07/01/2010

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