Centrica has handed in a plan for development and operation (PDO) for the Oda, formerly Butch, Field offshore Norway to the Ministry of Petroleum and Energy.
Under the PDO, the partners will spend about US$634.3 million (NOK 5.4 billion) on a subsea development for the field, which lies in production license 405 (PL 405). First production is scheduled in 2019.
Over the last couple of years the project team has managed to reduce investment costs by more than 40%, Centrica said of the current budget.
Oda will be developed with a seabed facility tied in to the Ula Field platform. The facility will consist of a subsea template with room to drill and complete up to four wells. The current plan is to drill two production wells and one water injection well, the Norwegian Petroleum Directorate (NPD) said.
From here, the oil will be exported to Ekofisk and onward via Norpipe to the Teesside terminal in the U.K. Produced gas from Oda will be injected in the Ula reservoir to improve oil recovery from the Ula Field.
The subsea facilities contract is covered by Centrica’s Strategic Partnership Alliance (SPA). The plan is to award this contract “before the end of December,” Centrica told SEN.
In late 2015 Centrica entered long-term partnership agreements with four suppliers: Aibel, Subsea 7, FMC and DNV GL. The agreements are based on a SPA model covering all phases of project execution, with a duration of up to 10 years.
Centrica said the advantages to the SPA agreements include:
- Early engagement to secure optimal use of the supplier’s experience and technical solutions;
- Increased standardization to reduce cost and project complexity; and
- Optimized interfaces and improved project execution.
“The SPA model works. So far we estimate more than 40% reduced cost within the SPA scope due to this way of working,” a Centrica spokesperson told SEN.
“The subsea tie-in is an innovative solution, which involves reusing the Oselvar infrastructure on the Ula platform,” Centrica said. “The chosen concept will provide safe, predictable and cost-efficient delivery of the Oda development and will also contribute to improved recovery from Ula.”
The NPD added, “Parts of the Oselvar Field’s subsea facility and processing equipment that are placed on the Ula platform will be reused on Oda. Production on Oselvar will be shut down in 2017 or 2018.”
“It is positive that the licensees in Oda, through excellent cooperation, have chosen a development solution that contributes to cost-efficient utilization of infrastructure in the area and available process capacity on Ula,” said Tove Francke, assistant director for development and operations in the southern North Sea at the NPD.
The Oda oil field lies in Block 8/10 and was discovered in 2011 in the southern part of the Norwegian North Sea with the 8/10-4 S well. The field lies about 13 km (8 miles) east of the Ula Field and 250 km (155 miles) southwest of Stavanger. Oda has a water depth of 65 m (213 ft). The reservoir is located 2,900 m (9,515 ft) below the sea surface.
Oda’s recoverable reserves are estimated at 48 MMboe, of which 95% is oil. Production is scheduled to start in 2019, with peak production forecast to be about 35,000 boe/d.
“In cooperation with our partners and reliable suppliers, we have developed one of the most robust projects on the Norwegian Continental Shelf (NCS),” said Dag Omre, general manager of Centrica in Norway. “Times are challenging in the oil and gas sector, and it is therefore very satisfying to deliver a PDO that will generate increased activity in the industry. Oda will contribute about 5,500 jobs over the field’s lifetime, and we expect to award several contracts soon.”
Centrica entered the Norwegian market in 2006 and “has grown into one of the top 10 largest oil and gas producers on the NCS,” the operator said. Oda is Centrica’s first development as an operator in Norway.
Omre said, “We have laid down the building blocks, one-by-one and have a good foundation for the future. Norway is a priority area for Centrica’s oil and gas activities, and we plan to continue investing.”
Centrica operates PL 405 with a 40% stake. Partners are Suncor Energy (30%), Faroe Petroleum (15%) and Tullow Oil (15%). Tullow’s stake is due to be acquired by Aker BP.
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