STATOIL HIKES SMOERBUKK OIL RESERVES ESTIMATE

April 10, 1995
Norway's Den norske stats oljeselskap AS has almost doubled its estimate of reserves in its Smoerbukk prospect after a reservoir simulation based on results of a recent appraisal well. Statoil said the Smoerbukk reservoir in Norwegian Sea Block 6506/12 is now thought to hold reserves of 553 million bbl of oil, up from 289 million bbl in previous estimates. That boosts the state firm's estimate of reserves for the Smoerbukk, South Smoerbukk, and Midgard prospects, which are being studied

Norway's Den norske stats oljeselskap AS has almost doubled its estimate of reserves in its Smoerbukk prospect after a reservoir simulation based on results of a recent appraisal well.

Statoil said the Smoerbukk reservoir in Norwegian Sea Block 6506/12 is now thought to hold reserves of 553 million bbl of oil, up from 289 million bbl in previous estimates.

That boosts the state firm's estimate of reserves for the Smoerbukk, South Smoerbukk, and Midgard prospects, which are being studied for joint development, to a total 792 million bbl of oil and 198 billion cu m of gas.

Elsewhere off Northwest Europe, BHP Petroleum Ltd. plans to abandon three platforms in Esmond and Gordon gas fields in the U.K. North Sea. They were shut in Mar. 31 after almost 10 years of production.

The fields' producing lives came to an end with completion of a suppliers nomination contract with British Gas plc. Since going on stream in June 1985, the fields have produced about 500 bcf of gas through a 126 mile pipeline to Bacton terminal in Norfolk, U.K.

SMOERBUKK AREA

Early this year, Statoil commissioned a feasibility study for development of its Smoerbukk, South Smoerbukk, and Midgard prospects using either two platforms, one platform and a floating production system, or two floaters (OGJ, Jan. 23, p. 17).

Statoil said the boost to reserves will not significantly change the development proposals, on which a decision is expected this summer.

Statoil still has a challenge to make development of the three fields competitive with projects in the North Sea, a Statoil official said: "The problem with Smoerbukk is its complex reservoir, which will make drilling and subsea equipment costs quite high."

The development team is thought to be viewing use of at least one floater as the best development plan. Also, the official said, onshore processing of gas at Kollsnes or Karsto terminal is likely to be favored.

Statoil plans to spud a 10th Smoerbukk well in April. This is intended to map additional oil reserves in a reservoir estimated to be 35 km long with maximum thickness of 900 m.

PLATFORM ABANDONMENTS

BHP has let a 30 million ($45 million) contract for platform abandonment in Esmond and Gordon fields. Heeremac VOF, Leiden, Netherlands, will decommission the platforms during 12 months starting this summer.

Esmond central production platform, in 33 m of water on Block 43/13a, has an eight legged steel jacket supporting a 5,000 metric ton production deck built in three layers.

A four legged wellhead platform, with slots for 12 wells, stands alongside the processing facility in Esmond field.

Gordon platform in Block 43/20a is a satellite of Esmond's processing platform. Gordon's jacket is 29 m high, and its topsides also are three-layered.

Total weight of the Esmond complex structures is 15,000 metric tons.

Abandonment of the Esmond processing platform will involve the largest North Sea platform removal to date.

A fourth Esmond complex platform, on Forbes field, was decommissioned in 1993 (OGJ, Mar. 20, p. 31).

It is most likely the three platforms will be removed during a 3 week period in summer 1996, using the DB101 or DB102 heavy lift vessels.

Removal will involve cutting the legs below seabed level, removal of jackets and topside,5 in 13 lifts, transportation to shore for scrapping, and trawling of the seabed to ensure it is clear of debris.

Partners in the Esmond complex are operator BHP 60%, Elf Exploration U.K. plc 25%, Lasmo North Sea plc 12.5%, and London's Monument Resources Ltd. 2.5%.

BHP's U.K. subsidiary changed its name from Hamilton Oil toward the end of March, having been formed by the Australian group's acquisition of the U.K. offshore pioneer in 1991.

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