OSLO Mar 22, 2007 (Dow Jones Newswires)
BP (BP) has submitted a plan for the redevelopment of its Valhall field to the Norwegian authorities for approval, the company said Thursday, considerably later than had been expected.
"It's a major achievement and a big step forward in the right direction," said BP spokesman Jan Erik Geirmo.
The planned 14 billion Norwegian kroner ($2.30 billion) investment includes the building of a new platform to replace existing platforms and arrest subsidence at the field, which will extend Valhall's lifetime to 2049.
The redevelopment project had been expected to cost in the region of NOK10 billion, according to BP earlier this year.
A delay to the submission of the plan for development and operation, or PDO, was due to BP's decision to have a single lift on the topside of the new platform rather than several to increase efficiency, the company said late last year.
Valhall currently produces just shy of 100,000 barrels of oil equivalent a day. Figures from the Norwegian Petroleum Directorate, or NPD, show it produced 0.32 million standard cubic meters of oil and 0.06 billion standard cubic meters of gas in January while in 2006 as a whole, the field produced 4.04 million cubic meters of oil and 0.77 billion cubic meters of gas.
The redevelopment plan sets out the details of an integrated processing and housing platform, which is due to start up from 2009-2010. It will receive its power supply from onshore, meaning that carbon dioxide emissions from the field will be negligible.
BP owns a 28.09% operating stake in Valhall, while Amerada Hess, Enterprise Oil Ltd. (EON.V) and Total SA (12027.FR) have 28.09%, 28.09% and 15.72% stakes respectively.
Copyright (c) 2007 Dow Jones & Company, Inc.
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