The shelf in 2008 - Developments

08.01.2009
During 2008, the authorities approved plans for development and operation (PDOs) for Yttergryta and Morvin in the Norwegian Sea. In 2009, as many as ten new development plans may be submitted to the authorities for approval.

The StatoilHydro-operated Yttergryta and Morvin fields will be developed with subsea templates, and both will be tied in to the Åsgard field.

Production from Yttergryta can contribute to reducing technical flow challenges in the pipelines on Åsgard. Morvin contains oil, which will utilise available liquid capacity on Åsgard.

The approval process for the Morvin PDO led to a decision to drill an additional production well. This well is expected to yield improved recovery and improve the field's profitability.  

The authorities received the PDO for Frøy (redevelopment) and Trym (3/7-4) in the second half of 2008. These plans are still being evaluated.

In 2009, the authorities expect that as many as ten new development plans will be submitted. There are two major development projects that licensees could decide to develop in 2009:

  • 15/3-1 Gudrun (operator StatoilHydro)
  • 7122/7-1 Goliat (operator Eni)

There is often uncertainty as regards when a PDO can be submitted to the authorities. Several factors can lead to the planning phase taking longer than anticipated, such as:

  • uncertainty in the resource base
  • available capacity in existing infrastructure
  • design of the development concept
  • marketing opportunities for gas

Several development projects appear to be less robust as a result of the sharp drop in the price of oil and continued high cost levels.

Important decisions in the development projects are often made well in advance of submitting the PDO to the authorities. Updated guidelines for the PDO process, which are currently undergoing consultation, call for more formalised information to the authorities in a pre-PDO phase. The guidelines for plan for installation and operation(PIO) will also be updated.