By Alex MacDonald

 

LONDON--North Sea-focused Faroe Petroleum PLC (FPM.LN) said Wednesday that its partners in the Oda field, previously called the Butch field have submitted a project development plan to the Norwegian government for approval.

The 15% Faroe-owned Oda field was discovered in 2011, in the Norwegian North Sea, in shallow water about 13 kilometers east of the 20% Faroe-owned producing Ula field.

The development plan proposes two production wells and one water injection well at the field that will tie back to the Ula platform.

Oil will be transported through the Norpipe system to the Teesside Terminal in the U.K., while the gas will be sold at the platform to Ula for re-injection into the Ula reservoir to improve recovery.

Production from the Oselvar operations will cease to allow Oda production to commence and the Oselvar owners will be compensated accordingly.

The Oda field is 40%-owned and operated by Centrica PLC (CNA.LN), 30%-owned by Suncor Energy Inc. (SU), and 15%-owned by Aker BP ASA (AKERBP.OS). The project is forecast to cost 5.4 billion Norwegian kroner ($522 million) to develop and is scheduled to start in 2019.

Faroe's shares were up 0.35% at 17.5 pence, resulting in a market capitalization of 261 million pounds, or $325 million.

 

-Write to Alex MacDonald at alex.macdonald@wsj.com

 

(END) Dow Jones Newswires

November 30, 2016 03:44 ET (08:44 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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