More Mixed Results for Exploration in Norwegian Waters

Faroe Petroleum announced the spudding of the Centrica-operated Butch Shout West exploration well 8/10-6S in the Norwegian North Sea, while Noreco said that it would plug and abandon the well 6608/10-16 (PL484) in Norway.

These mixed messages confirm the oil and gas industry’s difficulties. Norway is set to remain central for European energy security. That is why local companies and European governments would really be welcoming to discoveries. 

“We are pleased to announce the spudding of the Butch South West exploration well which, if successful, offers the potential to add substantially to the volumes and value of the Butch field, as the adjacent Butch Main field is already on track for near-term development. In the near term we also look forward to reporting the results from exploration drilling on the Bue prospect (Faroe 25%) in the Norwegian Sea in close proximity to the recently announced significant Pil oil and gas discovery,” Graham Stewart, Chief Executive of Faroe Petroleum commented in a note. 

On the other hand, Noreco-operated well did not prove commercially feasible.

The partners in PL484 are Noreco Norway AS (30% and operator), Dana Petroleum Norway AS (30%), Explora Petroleum AS (30%) and E.ON E&P Norge AS (10%).

Despite the difficulties, Norwegian government confirmed its commitment on energy projects. 

On Friday, Norwegian authorities rejected an appeal from Greenpeace, giving the green light to Statoil’s plan to begin exploration activities on the Apollo prospect in the Barents Sea.