Norway Approves Fenja PDO
Independent oil and gas company Faroe Petroleum announced Tuesday that the Norwegian Minister of Petroleum and Energy has approved the plan for the development and operation (PDO) of the Fenja field.
Fenja, which is situated 20 miles south-west of the Njord production facility, will be developed with three oil producers, two water injectors and one gas injector, which will be converted to a gas producer during the gas blow-down phase towards the end of field life, Faroe revealed.
The operator of the field, VNG Norge AS, estimates that Fenja contains gross recoverable resources of 97 million barrels of oil equivalent, and is comprised predominantly of oil. Fenja is expected to come on stream in 2021 with a planned field life of 16 years.
“We are very pleased to announce approval of the development plan for the Fenja field,” Graham Stewart, chief executive of Faroe Petroleum, said in a company statement.
“When Fenja comes on stream in 2021 it will contribute considerable cash flow and value to Faroe. Fenja is another prime example of Faroe’s successful exploration model which continues to deliver considerable success and value,” he added.
In February this year Faroe announced that it had executed a transaction with Suncor Energy Norge AS for the sale of a 17.5 percent working interest in the Fenja development for a cash consideration of $54.5 million.
The Fenja PDO approval was the principal condition precedent to completion of this transaction. Faroe retains a 7.5 percent working interest in the Fenja development.
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