Noreco starts production from Oselvar field in North Sea
Norwegian Energy Company (Noreco) has started production from the Oselvar field located in licences PL274 and PL274CS in the southern part of the Norwegian North Sea.
The Oselvar field has been developed with a subsea template, tied back to the BP operated Ula field, located 23km away from Oselvar.
The start-up is based on production from two horizontal production wells, while the third is currently being drilled and will be completed in the coming months.
Noreco CEO Einar Gjelsvik said the start-up of Oselvar production is an important milestone for the company.
"This is the first field development for Noreco on the Norwegian Continental Shelf, and it represents the largest greenfield investment so far in the company's history," said Gjelsvik.
"Oselvar will contribute to renew and diversify our portfolio of producing fields, and will contribute significantly to Noreco's production and cash flow."
Oil from the field will be sent to Teesside on the UK's east coast for onward sale, while the gas is re-injected into the Ula reservoir.
Oselvar has an expected production life of around 20 years and total estimated reserves are 53 million barrels oil equivalents
The field is operated by Dong, which holds a 55% interest, while Bayerngas Produksjon Norge holds 30% and Noreco has a 5% stake.