100M Barrels Produced from Varg Field
Norwegian producer Det norske oljeselskap reported Monday that its Varg field has now produced 100 million barrels.
Production on the Varg field, offshore Norway, began in December 1998, with the original estimate being that the field would produce approximately 63 million barrels.
The field was instrumental in the development of Det norske. In 2002, the original operator Hydro planned to shut down the field, which would have seen the FPSO Petrojarl Varg end up with no field assignment. So, after the Norwegian government opened up the Norwegian Continental Shelf for new companies in 2001, Erik Haugane and Kaare Gisvold at PGS Production saw an opportunity to start a new oil firm that would take over the Varg field and continue production there.
PGS, which later became Det norske, paid less than one dollar for 70 percent of the Varg field. Varg was later sold to Talisman Energy, which continued to invest in the field, with Det norske retaining a five-percent interest.
Det norske said that new discoveries, the drilling of new wells and gas production has made the field viable long after the plan to decommission the field was approved in 2001.
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