Norwegian parliament approves Gjøa

Offshore staff

OSLO, Norway -- The Norwegian Storting (parliament) has approved the Statoil-operated North Sea Gjøa field's plan for development and operation (PDO).

"We are very pleased that the development is finally approved. A review by the owners of the required approval terms and conditions remains, however, particularly in light of the fact that the project is economically marginal. Realization of Gjøa's reserves will give Statoil significantly increased production and returns," says Tim Dodson, acting vice president for exploration and production Norway.

The Gjøa field will be developed with a floating production platform with plans calling for it goes onstream in 2010. Gas will be sent via the UK Flags pipeline to St Fergus in Scotland. Oil will be piped to the Troll II line and further to the Statoil-operated Mongstad refinery north of Bergen.

The project has been made robust through the choice of the technical development solution and by tying back the Hydro-operated Vega and Vega South fields to Gjøa, Statoil says.

Research work is now in its last phase before final consideration by the Norwegian Water Resources and Energy Directorate.

Gjøa lies in blocks 35/9 and 36/7 and was proven in 1989. Reserves are estimated at 82 MMbbl of oil and 40 bcm of gas.

Gjøa licensees include Gaz de France with 30% interest, Petoro with 30% interest, Statoil with 20% interest, Shell with 12% interest, and RWE Dea with the remaining 8%.

Gaz de France will be operator during the production phase.

6/15/2007