Norway's Aerfugl Gets Green Light
Norway approved the Aerfugl gas field development plan (PDO) last week and positive news was disclosed April 10 about two appraisal wells.
The petroleum ministry said April 6 it approved the PDO for Aerfugl gas and condensate field in the Norwegian Sea, which will be tied back to the nearby Skarv production ship. Aerfugl will cost kroner 8.5bn ($1.1bn) to develop. Gas will be exported via existing gas export pipelines to Europe. Production is expected from 4Q 2020.
NPD said April 10 that an exploration well (6507/5-8) 1km west of the Skarv field was dry on its primary target, but found a 25-metre gas column on its secondary (appraisal) target, Aerfugl. It now puts preliminary Aerfugl recoverable reserves at between 27.6 and 46.8bn m3 gas and 4.93-7.7mn m3 condensate. Roughly 85% of overall reserves are gas. The PDO for Aerfugl (formerly Snadd) was submitted in December 2017. Partners are Aker BP (operator, 23.8%), Statoil 36.2%, Russian-owned DEA 28.1% and Poland’s PGNiG 11.9%.
Also April 10, UK-listed Faroe Petroleum said that preliminary results of the Fogelberg appraisal well (6506/9-4 S), also in the Norwegian Sea, have confirmed gas and condensate in a sand-rich reservoir that is of “better quality than that seen in the original discovery well, 6506/9 2 S.” Fogelberg partners are Spirit Energy (operator with 51.7%), PGNiG 20%, Faroe 15% and Dutch firm Dyas 13.3%. The field is 18 km north of the producing Asgard gas/condensate field.
Spirit Energy told NGW that it expects to make an announcement about Fogelberg once a drill-stem test has been completed, but said there was nothing it could disagree with in Faroe's statement.
Norway also April 5 approved the PDO for the VNG Norge-operated Fenja oil and gas field, also in the Norwegian Sea, details of which were posted as an update to this report. It will cost kroner 10.2bn ($1.3bn) to develop, less than originally planned.