North Sea oil giant could dominate Norwegian production

Wood Mackenzie believes the value of the Aldous/Avaldsnes discovery in the Norwegian North Sea could potentially reach $13 billion.

Offshore staff

EDINBURGH – Wood Mackenzie believes the value of the Aldous/Avaldsnes discovery in the Norwegian North Sea could potentially reach $13 billion.

Geoff Gillies, North West Europe lead analyst, said: “At the upper end of current expectations and based on currently commercial fields, the field could account for 20% of Norwegian oil supply from 2020, rising to over half by 2027, making a vital contribution to Norway’s long-term oil production.

“This would rank it as the third largest Norwegian oil discovery of all time, and the seventh largest find in the history of the North Sea.

“With the recoverable reserves estimate now ranging from 1.2-2.6 Bbbl of oil equivalent, the field could be worth between $6.7 billion and $13 billion.”

Recent appraisal drilling, he adds, “not only proves the continuous geological structure across licenses PL265 and PL501, operated by Statoil and Lundin respectively, it also indicates higher porosity, higher oil saturation, and a net to gross ratio of close to 100%.”

A unitization agreement still has to be established since the field straddles two licenses involving different co-venturers, but Gillies says it is a positive sign that the two operators have already formed a joint team to undertake conceptual development studies.

10/05/2011

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