Talisman Energy strikes oil in Norwegian sector of North Sea

OSLO — The Norwegian unit of Canadian oil company Talisman Energy Inc. (TSX:TLM) has struck oil near the existing Varg field in the Norwegian sector of the North Sea, the Norwegian Petroleum Directorate announced Monday.

The government agency said the size of the find had yet to be determined, while project partner Det norske oljeselskap ASA called the discovery “significant” in a separate news release. The find was made in an area designated the Grevling field, 240 kilometres off the western city of Stavanger.

“The Grevling oil discovery is very positive,” said Det norske’s vice-president for reserves and area developments Odd Ragnar Heum. He said it also fuels optimism for other exploration wells being drilled nearby.

The petroleum directorate said “if profitable resources are proven, the discovery could be tied in to the Varg field.” Tying new finds into existing fields cuts cost and time because the needed offshore platforms and systems are already in place.

Talisman, with a 40 per cent share, operates the field on behalf of Det norske and Norwegian state investment group Petoro ASA, with 30 per cent each.