Noreco considers write-down on Oselvar field

Updated geological and reservoir evaluations from operator DONG Energy show a range of problems at the producing Oselvar field in the Norwegian North Sea, according to partner Noreco.

Offshore staff

STAVANGER, Norway – Updated geological and reservoir evaluations from operator DONG Energy show a range of problems at the producing Oselvar field in the Norwegian North Sea, according to partner Noreco.

These include lower in-place volumes, a more complex reservoir, less connectivity, and poorer reservoir quality, resulting in a reduction of reserves and a shorter production lifetime than previously assumed.

Noreco is now considering a write-down of its booked reserves for Oselvar of around 50-75% of current estimates, equivalent to NOK 100 million ($15.5 million) post-tax.

In the Danish North Sea, DONG completed technical installation work in July connected with the permanent repair of theSiri platform, which receives production from the Nini and Cecilie satellites in which Noreco is also a partner.

Use of the subsea storage tank at the Siri field resumed last week. Final commissioning and authority approvals are expected to follow soon. The previous temporary solution of production directly to shuttle tanker has now been terminated.

10/01/2014

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