DEA Awards Norwegian Rig Contract

DEA has contracted a rig to drill production wells on its Dvalin gas field development in the Norwegian Sea but has just received less cheering news about a gas exploration well in the Barents Sea.  

Hamburg-based producer DEA, owned by Russian investors through LetterOne, said November 21 it has contracted Transocean to drill four production wells on Dvalin starting mid-2019 using its Transocean Arctic rig (pictured above, courtesy of Transocean). The contract value is $68mn, said DEA, and the agreement includes an option to drill additional wells.

Dvalin field is the first operated field development for DEA in Norway. Approval was granted in March for the kroner 10bn ($1.2bn) development that targets first production in 2020 and aims to open up recoverable reserves of 18.2bn m³ gas and 2.5mn barrels condensate. PL435 (Dvalin) licensees are operator DEA 55%, Norwegian state Petoro 35% and EDF's Italian subsidiary Edison 10%.

Swedish independent Lundin Petroleum meanwhile said November 21 it made only a minor gas find at a well on its Hufsa gas prospect in the Barents Sea. 

It made a non-commercial gas find in the main well, while the sidetrack was dry, at exploration well 7219/12-2 on the Hufsa prospect on PL533 in the southern Barents Sea. Drillrig Leiv Eiriksson will move on to drill the Hurri prospect, also on PL533, once the Hufsa well is completed. PL533 partners are operator Lundin 35%, Aker BP 35%, and DEA 30%. Upstream regulator NPD put the minor gas find was less than 0.5bn m³. Hufsa and Hurri are close about 50km to the northwest of the offshore Snohvit gas field, and in proximity to the Alta, Gohta and Filicudi mostly oil discoveries.

Slide from Lundin Petroleum corporation presentation earlier in November 2017. (Map credit: Lundin)