Green light for Oselvar field in the North Sea
June 19 The Norwegian Government approved the development of the Oselvar field, located in the North Sea about 250 km from the Norwegian coast, whose reserves are estimated at 52 million barrels of oil equivalent and which is set to come on stream in 2011.
The field is in block 1/2 and 1/3 about 23 km west of the Ula field.
“Oselvar is a good example for the development of small deposits near existing fields can provide good profitability,” said Oil and Energy Minister Terje Riis-Johansen. “The project also helps to prolong the life of the Ula field by exploiting the capacity there,” he added.
The project is estimated to provide an increased employment of 5,600. “It is also positive to see that new licensees help to develop fields on the shelf,” the minister said.
Danish group Dong Energy is the operator. The other licensees are Bayerngas and Norwegian Energy Company. The field will be developed with a subsea installation, and production from Oselvar will be linked to Ula for the production and processing.
Production from Oselvar is planned to start in November 2011. The operator estimates recoverable reserves of 4.34 billion Sm3 gas and 3.91 million Sm3 oil. The operator has estimated the investments in relation to Oselvar to reach NOK 4.6 bn ($716m).