The Skarfjell oil discovery offshore Norway could become a new hub development, one of the partners in the project has said following succsesful appraisal drilling.
Cairn Energy, which holds 20% in Skarfjell, said it had increased its resource estimates on the discovery in the Norwegian North Sea to between 74 mmbbls (92mmboe) to 235 mmbbls (282mmboe) following an appraisal well drilled by operator Wintershall Norge.
The Skarfjell oil discovery was made in April 2012 and was immediately followed by a 3D seismic survey over the accumulation. Operator Wintershall Norge’s gross resource range for Skarfjell post discovery was between 60mmbbls and 160mmbbls.
Simon Thomson, chief executive, Cairn Energy, said: “Skarfjell is one of the largest discoveries in the Norwegian Sector of the North Sea in recent years.
"The combination of very good reservoir and large volumes will allow this discovery to be progressed towards development, with a number of commercially attractive options possible including a standalone facility or a hub development incorporating surrounding undeveloped discoveries.”
Norway's Petroleum Directorate said: "The objective of well 35/9-8 was to delineate the discovery. The well encountered an oil column of 64 metres (gross) in the Heather formation, with reservoir rocks and reservoir quality as expected. Preliminary estimation of the size of the discovery is between 10 and 25 million Sm3 of recoverable oil.
"The oil/water contact was encountered. A successful formation test was completed. The maximum production rate from a 13-metre interval in the reservoir was 300 standard cubic metres (Sm3) oil and 53 400 Sm3 gas per flow day through a 24/64-inch nozzle opening. The licensees in production licence 418 (link to fact page) will consider producing the discovery together with other discoveries in the area of the Gjøa field, or as an independent development.
"The appraisal well was drilled to a vertical depth of 3232 metres below the sea surface, and was terminated in the Middle Jurassic Rannoch formation. The water depth is 368 metres. The well will now be permanently plugged and abandoned.
"The well was drilled by Transocean Arctic, which will proceed to production licence 511 in the Norwegian Sea to drill wildcat well 6406/6-3 where Wintershall Norge AS is the operator."
The other equity holders in Skarfjell are Bayerngas Norge with 20%, Edison International Norway Branch with 15% and RWE Dea Norge with 10%.
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