Oseberg West Flank commences production

February 9, 2006, 00:50 CET

The satellite development Oseberg West Flank has commenced production from the first of three planned wells. When fully developed, the West Flank will produce 25,000 barrels of oil per day.

The underwater development Oseberg West Flank lies ten kilometres north west of Oseberg Field Centre.

“The west flank will make an important contribution to production at Oseberg field centre, and is part of our work to increase value creation from the Oseberg area,” says Jan Arve Haugan, director of Oseberg-Grane in Hydro Oil & Energy.

The field contains recoverable reserves of 27 million barrels of oil and 3,5 billion cubic metres of gas.

The development project started in 2003 after oil and gas were proven in three exploration wells drilled between 1985 and 2001.

The rig Deep Sea Delta has drilled the first production well, which is 3729 metres long, and enters the upper part of the Statfjord formation. In order to ensure effective utilization of the resources in the field, a water injection well will be drilled from the Oseberg field centre.

Deep Sea Delta will continue work on the west flank in parallel with the drilling from Oseberg field centre. The rig has now started drilling a new production well with two branches.

Later a third well will be drilled to the West Flank from the underwater installation.

Oseberg field centre receives the oil, which is lead through pipelines on the seabed.

Vetco Aibel have undertaken the conversion of Oseberg field centre, while Subsea7 has laid pipelines and control cables.

The underwater installation has been produced by FMC Energy Systems.

Partners:

Hydro (operator):

34.0%

Petoro:

33.6%

Statoil:

15.3%

Total:

10.0%

Exxon Mobil:

4.7%

Conoco Phillips:

2.4%