Borg satellite generates NOK 3.4 billion earnings

April 20, 2001, 01:00 CEST

Hydro's Borg satellite oil field in the North Sea has already produced some 12.6 million barrels (2 million cubic meters) of oil and generated NOK 3.4 billion (USD 380 million) in earnings - based on current oil prices - since starting operation in July 1999.

"It's very profitable to develop smaller discoveries close to existing offshore infrastructures - and Borg is a typical example of that," says Anne Ekern, chief information officer for Exploration and Production in Hydro's Oil and Energy business area.

Borg, which lies 1 kilometer distant from Hydro's Tordis oil field in Block 34/7, is developed with two injection and two production wells - and is profitable down to an oil price of under USD 6 per barrel. Borg is produced via a subsea template on Tordis and processed on the Gullfaks C platform.
Borg's total recoverable oil reserves are estimated at 80 million barrels of oil. It is expected to continue producing until 2015.

Currently, an exploration/extension well is being drilled on Borg Nord (34/7-31), which can eventually result in additional development of the area north of Borg.

Half of the oil produced in the Tordis facility comes from Borg.

The development of Borg, previously called H-Central, had a price tag of some NOK 800 million (USD 90 million).

Shareholders of the Borg license include field operator Hydro (13.28), Statoil (58.22), ExxonMobil (10.5), Idemitsu (9.6), RWE-DEA (2.8) and TotalFinaElf (5.6).