DEA has purchased E.ON's Norwegian oil and gas business and strengthens its position on the Norwegian Continental Shelf (NCS) significantly. With the deal, DEA will increase its total production in Norway to about 75,000 barrels of oil equivalent per day (boe/d).
The deal comprises equity interests in 43 licences including the shares of the three producing fields Skarv (28.1%), Njord (30%) and Hyme (17.5%). The daily production of the fields is approximately 45,000 boe/d.
"This acquisition is a perfect fit to our business strategy. It will grow our reserves, significantly increase our production and add growth optionality to our portfolio.”
Thomas Rappuhn, CEO of DEA Deutsche Erdoel AG
DEA expands position on Norwegian Continental Shelf
Altogether DEA now holds more than 70 licences in Norway, including working interests in a number of producing fields and as operator in several exploration licences including the Zidane field, which is currently being considered for development.
The new assets are an excellent enlargement of DEA’s operations
The acquisition also provides DEA access to promising growth options through material development and exploration. The new portfolio is well balanced in terms of oil and gas composition and has a full-cycle asset base. DEA will also acquire interests in additional developments and discoveries, including Snilehorn, Snadd and Fogelberg, as well as a broad portfolio of exploration licences on the Norwegian Continental Shelf.
Skarv - One of the biggest industrial projects in Norway
The Skarv gas-condensate and oil field was put into operation in 2012. The development was one of Norway's largest industrial projects. The Skarv unit consists of four unitised licences: PL159, PL212, PL212B and PL262 approx. 210 km off the coast of Sandnessjøen. Four discoveries were made in the unit (Skarv & Gråsel (1998), Idun (1999) and Snadd (2000).
DEA’s stake in the project, involving the collaboration of the partners BP (operator), Statoil and PGNiG, amounts to 28.1%. Five subsea templates have been built for the field, which are connected to a floating production, storage and offloading (FPSO) vessel. The transportation of the gas takes place via the 80 km long Åsgard Transport System.
|Water depths||350 - 450 m|
The reservoirs in Skarv contain gas and condensate in Middle and Lower Jurassic sandstones in the Garn, Ile and Tilje Formations. There is also an underlying oil zone in the Skarv deposit in the Garn and Tilje Formations. The Garn Formation has good reservoir quality, while the Tilje Formation has relatively poor quality.
|Reservoir depth||3,500 - 3,700 m|
|FPSO production capacity||675 mmcf/d for gas and 85 kbbl/d for oil|
|FPSO storage capacity||875 kbbl|
BP (operator): 23.84%
Njord - Significant share on the North Field
DEA is acquiring a significant share, with a 30% stake in the Njord oil and gas field. Njord is an oil field located about 30 km west of Draugen in the Norwegian Sea and was first discovered in 1986. Production started in 1997 from three reservoirs (Tilje, Ile and Åre).
Our partners in this project are Statoil (operator), GDF Suez, Faroe Petroleum and VNG. The field has been developed using Njord A, a floating steel platform unit. The oil extracted at Njord is first passed through a pipeline from the platform to the storage tanker Njord Bravo, which is moored near the platform. The ship has a capacity of 110,000 cubic metres of oil. The oil is then transported via pipeline, storage tanker and oil tanker to the markets. Gas from the field is transported via a 40 km pipeline – which itself is connected to the Åsgard transport pipeline – to the gas processing plant in Kårstø.
|Water depths||330 m|
|Reservoir||The reservoir consists of Jurassic sandstones in the Tilje and Ile Formations. The field has a complicated fault pattern with only partial communication between the segments.|
|Reservoir depth||2,900 - 3,200 m|
Statoil (operator): 20%
Hyme - Only 19 km northeast of the Njord field
The Hyme oil field was discovered in 2009. It is located about 19 km northeast of the Njord field and about 14 km west of Draugen. Hyme is now operated in cooperation with the partners Statoil (operator), GDF Suez, Core Energy, Faroe Petroleum and VNG. DEA's stake in the field, which has been producing since February 2013, is 17.5%.
It is within the area applicable under Production Licence 348 (PL348) about 19 km southwest of the Njord field on the Norwegian Continental Shelf. The water depth here is 250 m. Hyme is being developed using a subsea tie-back to the Njord A platform. The field has been developed with a production well and a water injection well via a standard subsea template designed for four well slots.
|Water depths||250 - 280 m|
|Reservoir||The reservoir contains oil and gas in the Lower Jurassic Tilje Formation. Hyme shows the same geological development as the neighbouring Njord field.|
|Reservoir depth||2150 m|
Statoil (operator): 35%