Norsk Hydro Planning New Oseberg Satellite

On Friday Hydro submitted its Plan for Development and Operation (PUD) of the satellite field Oseberg Delta in the North Sea to the Norwegian Ministry of Oil and Energy. Production start is scheduled for October 1, 2007.

"Oseberg Delta will be a major contribution to the further development of the Oseberg area," says Jan Arve Haugan, Director of the Oseberg/Grane unit in Oil & Energy.

Oseberg Delta will be developed as an underwater installation with four drilling slots which will be connected to the Oseberg D platform at the Oseberg field centre with two pipelines.

Here the production stream will be directed to the same receptor used for the Tune satellite field. The estimates for recoverable gas from Oseberg Delta are in the order of 8 billion cubic meters.

In addition it has been calculated that the field contains 2.7 billion cubic meters of recoverable fluids in the form of oil and condensates.

Production from Oseberg Delta will increase gradually as production Tune declines. At its peak, Delta will produce five million cubic meters of gas per day. It is expected that Oseberg Delta will remain in production until 2014.

Opening opportunities
The development of Oseberg Delta is estimated to cost 1.8 billion NOK, including the drilling of two wells.

The wells will be drilled in the winter of 2006/2007. Delta is considering development of several new opportunities in the area, such as the "G-central" prospect.

"Oseberg Delta is a building block that makes it possible to include production from other sea bed structures nearby," says Tore Grønvold, who is project manager for Oseberg Delta PUD.

The development plan for this field is the last milestone for the time being in Hydro's long-term work to develop the Oseberg area. Production from the satellite field J-structure at Oseberg South began earlier in June.

Work on the Oseberg West Flank is continuing at full pace, and production will commence in December 2005.

It is expected that the Ministry will respond to the application for development during September.

Partners in Oseberg Delta are Hydro as operator with 34.0%; Petoro AS with 33.6%; Statoil ASA with 15.3%; Total E&P Norge with 10.0%; ExxonMobil Production Norway Inc with 4.7%; Norske Conoco Phillips with the remaining 2.4%.

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