DONG To Bring Two Fields Onstream in 2003

Two new oil fields in the Danish part of the North Sea, Nini and Cecilie, are expected to go on stream in the summer of 2003. The licensees have just submitted plans for a coordinated development and operation of the two oil fields to the Danish Energy Agency. The development plans and the environmental impact assessments (EIA) have been submitted by DONG as operator in the two groups.

According to the plans, unmanned wellhead platforms are to be established at Nini and Cecilie. Pipelines will be installed between the wellhead platforms and the Siri platform where the oil will be processed and exported by tanker through the existing installation. The distance from Cecilie to Siri is approximately 10 km and from Nini to Siri approximately 30 km.

The partners in both Nini and Cecilie have made an agreement with the partners in licence group 6/95 (Siri) concerning the terms for processing of the oil from Nini and Cecilie at the Siri platform. At the same time, Statoil as operator on Siri and DONG are discussing the possibility of DONG taking over the operatorship in licence 6/95 from Statoil from January 1, 2003. If an agreement with the partners of the Siri group can be reached, DONG will be the operator of a contiguous area in the North Sea comprising the fields Siri, Stine, Nini and Cecilie.

The total development costs for Nini and Cecilie, including platforms, pipelines, wells and tie-in facilities at the Siri platform are expected to amount to approximately DKK 2.5 billion.

Both fields were discovered in 2000. The total recoverable reserves in Nini and Cecilie are provisionally estimated at approx. 65 million barrels of oil. The final sanction of the Nini and Cecilie development by the partners is expected around June 1, 2002 after approvals have been given by the authorities. The evaluation of the tenders received for construction of the platforms and the pipelines as well as the planning of the necessary upgrading of the Siri platform have already started. Production from Nini and Cecilie is therefore expected to start in the summer of 2003.

Parterns in 16/98 are Denerco Oil 37%, Denerco Petroleum 24%, DONG 22% and RWE-DEA 17% and Partners in 4/95 are DONG 40%, Denerco Oil 30% and RWE-DEA 30%.