New Norwegian oil and gas projects for $ 6,6 bn to be decided

Jun 23, 1999 02:00 AM

New Norwegian oil and gas projects, with an estimated cost of NOK 50 bn ($ 6,6 bn) may be decided this summer according to IINoil's Harald Birkevold.
A boost in crude prices and novel technology make way for optimism, while some of the projects are dependent on tax reductions to make a profit.
The fate of the Kristin field, a major field development postponed last year due to the slump in crude prices, is to be decided soon. This Autumn, the license partners will decide if Statoil's Kvitebjørn and Hydro's giant Grane field are to be developed.
If none of these projects get the go-ahead, the nightmare for Norwegian offshore suppliers and outfitters will become a reality.
Investments will plunge, and thousands of jobs will be at stake. If all projects are on, the offshore market is set to make a soft landing instead of an abrupt dive, with a relatively high level of activity for years to come.

The fate of the Saga-operated Kristin-license is now in the hands of Hydro and Statoil, who are set to take over Saga shortly. According to the take-over agreement, Statoil is responsible for the Saga fields at Haltenbanken South.
Saga proposes to develop the field with a floating production platform or a production vessel like the Balder, Jotun and Åsgard solutions. The critical issue is to get costs down from an estimated NOK 13,6 bn to NOK 10 bn, which will make the field profitable with crude prices as low as $ 10.
If Saga gets the green light, a plan for development and operation will be handed over to the department in November.

Source: IINX via Iinoil
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