Det Norske Oljeselskap ASA has as operator been authorized to develop the Ivar Aasen-field in the North Sea.
The plan for development and operation of Ivar Aasen and Gina Krog were approved on Friday. Det Norske has a 3.3% share in Gina Krog.
The Ivar Aasen field development is one of the largest recent developments on the Norwegian Continental Shelf. The Ivar Aasen field is estimated to contain 150 million barrels of oil equivalents.
Total investments in the project is estimated to be NOK 24,7 billion. The anticipated economic life of Ivar Aasen can reach 20 years, depending upon oil price and production trend.
CEO Erik Haugane said: "Ivar Aasen is a vast development project which represents great value for the Norwegian society and for the license partners. We look forward to initiate the responsibility given as operator. Statoil excluded, this is the greatest development project a Norwegian company is carrying out in a long time. This is a huge step for Det norske as a company and for diversity on the Norwegian shelf."
Ivar Aasen will be developed and operated from Trondheim. An operation center with control room will be established in Trondheim. By this, Det norske brings the first operational organization of an independent field to Trondheim.
"It is awarding to recognize that the activity on the Norwegian Continental Shelf give spin-off effects to the entire country. The first operational organization in Trondheim will strengthen the city’s already specialist community within petroleum and technology," said Minister of Petroleum and Energy.
Det norske is operator for Ivar Aasen with 35% interest. The partners are Statoil Petroleum AS (50%) and Bayerngas Norge AS (15%). First oil is expected in the fourth quarter of 2016.
On March 8, the Dagny discovery was by The Norwegian Ministry of Petroleum and Energy renamed Gina Krog, named after one of the most important champions for women’s rights in Norway. The resources in Gina Krog extend into PL 029b, where Det norske is a partner.
Gross recoverable reserves from Gina Krog are estiamted at 225 million boe, adding approximately 7.5 million boe net to Det norske. Total investments are estimated at NOK 31 billion.
"Gina Krog is an important addition to our portfolio of field development projects and although the share may seem modest, we are participating in something big. Statoil has done an excellent job in maturing these resources into a new major field devleopment in the North Sea,” said CEO Erik Haugane.
First oil from Gina Krog is scheduled for first quarter 2017.
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