Gassnova scoops C02/exploration permit

June 15, 2010
Norway’s Ministry of Petroleum and Energy has issued its first offshore exploration license connected with carbon dioxide (CO2) storage.

Offshore staff

OSLO, Norway -- Norway’s Ministry of Petroleum and Energy has issued its first offshore exploration license connected with carbon dioxide (CO2) storage.

In late 2008, the Norwegian Petroleum Directorate (NPD) acquired 3D seismic close to the Troll field in the North Sea to investigate the suitability of the Johansen formation at Troll for permanent storage of CO2, and to determine where CO2 injection wells should be placed.

Gassnova, which manages carbon capture and storage programs on the government’s behalf, now has been granted a license to acquire seismic south of the area covered by the 2008 campaign. Again, the purpose is to gather more information concerning a potential well. The company started its acquisition program last week.

NPD says a significant data bank has been assembled during years of E&P in this area concerning the Johansen formation. That material has formed the basis for studies already performed with a view to identifying suitable CO2 storage locations.

Last week, a report was submitted to the Norwegian and British governments entitled One North Sea – A study into North Sea cross-border CO2 transport and storage. NPD was one of the contributors. UK-based consultancy Element Energy coordinated the research, which included contributions from the German and Dutch authorities

The project group has estimated existing storage space available and future needs. The group also investigated what would be needed to store CO2 from throughout Europe, and when this need might arise. And it addressed other issues, including what industry and national authorities could do to establish a framework and infrastructure for CO2 transport.

The report claims that Europe may need to store up to 270 million metric tons/yr (297 million tons/yr) of CO2 from 2030 onwards. Half the potential CO2 storage sites, it adds, lie beneath the North Sea.

NPD has issued a more conventional, production license to RWE Dea to drill a wildcat well in the Norwegian Sea.

Well 6507/7-14 S will be drilled by the Bredford Dolphin in PL 435 around 10 km (6.2 mi) northwest of the Heidrun field and 230 km (143 mi) west of Brønnøysund.

The area in the license comprises part of block 6507/7 and part of block 6507/8. RWE Dea Norge is the operator, in partnership with Edison International, Noreco, and Wintershall.

This is the first well to be drilled in the license, which was awarded in 2007 under Norway’s APA 2006 licensing round.

06/15/2010