UK-based Faroe Petroleum has announced that the licence partners of Oda field have submitted the plan of development and operation (PDO) to Norway's Ministry of Petroleum and Energy.
Discovered in 2011, Oda field in located at the Norwegian North Sea in shallow water nearly 13km from Ula field.
The Oda partnership intends to develop four-slot seabed template with two production wells and one water injection well that will get tied back to the Ula platform.
Crude oil will be transported using the Norpipe system to Teesside Terminal in the UK. Gas procured from the field will be sold at the platform to Ula for re-injection into the Ula reservoir to improve recovery.
The Oda partnership comprises four companies in Centrica Norge (40%), Suncor Energy Norge (30%), Aker BP (15%) and Faroe Petroleum (15%). Centrica is the operator of this project.
The planned subsea tie-in will use the existing Oselvar infrastructure from the Ula Platform. Oselvar will terminate its production when Oda starts its activity. The partnership will compensate the Oselvar owners accordingly. Faroe holds a 55% interest in Oselvar.
Expected investment at Oda is estimated to be around Nkr5.4bn ($640m) with production scheduled to start from 2019.
Proved and proved plus probable (2P) reserves from Oda are estimated to be 42Mboe, with 95% being oil and peak production is expected to be around 35,000boepd.
Faroe Petroleum CEO Graham Stewart said: “Oda is another outstanding example of the exploration success Faroe has had in Norway. I am very pleased to announce that the development plan for the Oda field has now been submitted, signifying an important step for Faroe’s future production growth.
“Following the successful Hyme development, Oda is the second Norwegian subsea tie-back development that Faroe has participated in, located in one of the Company’s core areas. Faroe is well-funded for the development with cash on hand and an undrawn reserve based lending facility available.
“Interests in the Ula and Oselvar fields, recently acquired by Faroe as part of the package of assets acquired from DONG Energy, provide further synergies and upside alongside Oda, where Faroe will benefit from enhanced recovery from gas injection in the Ula field along with tariff income and financial compensation from Oda owners as an Oselvar owner.”
An independent oil company, Faroe Petroleum focuses on exploration, appraisal and production opportunities in Norway and the UK.