With this purchase, Conoco has been selected to be an active participant in the restructuring of Norwegian petroleum assets to increase efficiencies on the Norwegian Shelf.
The transaction will increase Conoco's share in the Heidrun field, which the company discovered in 1985, from 18.3 percent to 24.3 percent. The field, located in the Norwegian Sea in 1,100 feet of water, was developed by Conoco using innovative concrete tension leg platform technology. Production from Heidrun began in 1995 and is expected to extend beyond 2020.
The Njord field also is located in the Norwegian Sea and has been producing since 1997. The field was developed by a floating semi-submersible drilling and production facility.
The additional interest in Heidrun and Njord will add around 50 million boe (of which approximately 7 million boe is natural gas) to Conoco's 2002 proven reserves.
"The purchase supports Conoco's strategic growth plans for Norway. It increases our presence significantly in the Norwegian North Sea and gives strategic weight to the application that Conoco has submitted for the 17th Licensing Round," said Tina M. Langtry, president and managing director Conoco Norway.
In Norway, Conoco holds interests in several world-class oil and gas fields, including Statfjord, Troll, Heidrun, Grane, Visund, Huldra and Oseberg South. For 10 years, the company's annual investment in exploration and new field development in Norway has averaged more than $250 million. Prior to increasing its interests in the Heidrun and Njord fields, Conoco's daily production was about 100,000 boe.
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