First Norway Njord Gas Seen Week Commencing Nov 19

OSLO Nov 14, 2007 (Dow Jones Newswires)

First gas exports from Norwegian oil field Njord are expected in the week commencing Nov. 19, a spokeswoman for field operator StatoilHydro ASA (STL.OS) said Wednesday.

"We have had really bad weather this fall, so the gas has been delayed for many weeks," said StatoilHydro spokeswoman Mari Dotterud. "At the moment, we're doing work on the field, it's not producing any gas yet.

"But the weather report seems good this week so we hope we will (bring gas) onstream not this week, but probably next week," Dotterud said.

She noted it was "difficult to tell" precise timings because operations will be weather dependent, but said gas "will reach full production quite quickly."

Gas flows from Njord were expected to start at the beginning of October, but the operation has been beset by a series of woes including problems with risers and bad weather.

Up to 6 million cubic meters of gas will be produced each day from Njord, which produces around 30,000 barrels of oil a day. Gas will be exported via a new 40-kilometer pipeline to the Asgard Transport system to Kaarstoe from where it will go on to European gas markets, while oil from the field is shipped by pipeline to storage vessel Njord Bravo.

So far 1.15 billion Norwegian kroner ($212.2 million) has been invested in equipment for gas export. Gas was previously reinjected to boost reservoir pressure and aid oil recovery.

StatoilHydro owns a 20% stake in Njord, E.ON Ruhrgas has 30%, Exxon Mobil (XOM) 20%, Gaz de France (1020848.FR) 20%, Petoro 7.50% and Endeavour Energy Norge AS (ENEC) 2.50%.

Copyright (c) 2007 Dow Jones & Company, Inc.


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