Ten of the 12 companies on Norway's Gas Supply Committee (FU) have told the Oslo government the three-field Aasgard project off mid-Norway should be developed to meet long term gas sales contracts.
Den norske stats oljeselskap AS operates Aasgard, whose development is a key to tapping large gas strikes in the Norwegian Sea (OGJ, Oct. 9, p. 29).
FU decided Aasgard should be developed to start deliveries of gas to European customers in October 2000. This plan foresees Aasgard production and exports of almost 11 billion cu m/year of gas.
However, it is expected that gas reserves in the producing Oseberg field also will be recommended for development. Oseberg operator Norsk Hydro AS and Elf Petroleum Norge AS are to contest the FU recommendation.
A Hydro official said FU declared that, while Aasgard was given all gas sales debated under this round of contract awards, Oseberg would be first in line during the next round of awards.
Hydro intends to write a letter to government saying the best solution would be to develop Aasgard and Oseberg gas reserves to start production at the same time.
"Because Aasgard is a new development," the Hydro official said, "development of gas from Oseberg, which is already produc- ing oil, would provide a safety net.
"It would be best to begin producing small quantities of gas from Oseberg from 2000. Oseberg would be very flexible as regards output and could act as a swing produced"
Norway's Storting (parliament) is scheduled to debate and decide on the gas supply contracts issue next spring.
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