COP » Topics » Norway

This excerpt taken from the COP 10-K filed Feb 23, 2007.

Norway

The Greater Ekofisk Area, located approximately 200 miles offshore Norway in the center of the North Sea, is composed of four producing fields: Ekofisk, Eldfisk, Embla, and Tor.  The Ekofisk complex serves as a hub for petroleum operations in the area, with surrounding developments utilizing the Ekofisk infrastructure.  Net production in 2006 from the Greater Ekofisk Area was 121,700 barrels of liquids per day and 123 million cubic feet of natural gas per day, compared with 124,800 barrels of liquids per day and 122 million cubic feet of natural gas per day in 2005.  We are operator and hold a 35.1 percent interest in Ekofisk.

During 2006, a review of the Eldfisk and Embla field facilities and process systems resulted in reduced expectations of facility life compared to previous forecasts.  We now anticipate future capital investments will be required to maintain and upgrade the facilities to continue production until the end of the license period.  An evaluation is under way to determine the optimal approach for a redevelopment of the Eldfisk and Embla facilities.  Pending determination and approval of capital expenditures necessary to extend facility life to the end of the license period, proved reserves were revised downward to reflect the shorter field life expectation.

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We also have ownership interests in other producing fields in the Norwegian sector of the North Sea and Norwegian Sea, including a 24.3 percent interest in the Heidrun field, a 10.3 percent interest in the Statfjord field, a 23.3 percent interest in the Huldra field, a 1.6 percent interest in the Troll field, a 9.1 percent interest in the Visund field, a 6.4 percent interest in the Grane field, and a 2.4 percent interest in the Oseberg area.  Our net production from these and other fields in the Norwegian sector of the North Sea and the Norwegian Sea averaged 75,800 barrels of liquids per day and 147 million cubic feet of natural gas per day in 2006, compared with 81,900 barrels of liquids per day and 150 million cubic feet of natural gas per day in 2005.

We and our co-venturers received approval from Norwegian authorities in 2004 for the Alvheim North Sea development.  The development plans include a floating production storage and offloading vessel and subsea installations.  Production from the field is expected to commence in 2007.  We have a 20 percent interest in the project.

In 2005, Norwegian and U.K. authorities approved the “Statfjord Late-Life Project,” a Statfjord-area gas recovery project with production startup targeted for late 2007.  We have a combined Norway/U.K. 15.2 percent interest in this project.

Transportation

We have interests in the transportation and processing infrastructure in the Norwegian North Sea, including a 35.1 percent interest in the Norpipe Oil Pipeline System and a 2.2 percent interest in Gassled, which owns most of the Norwegian gas transportation system.

Exploration

In 2006, one appraisal well and four exploration wells were completed.  The appraisal well within the Alvheim license and two of the exploration wells within the Heidrun and Oseberg licenses were successful.  The other two wells in the Troll and Oseberg licenses were expensed as dry holes.

During 2006, we were awarded interests in two licenses, PL392 located in the Voering Basin and PL085D located adjacent to the Troll licenses.

This excerpt taken from the COP 10-K filed Feb 27, 2006.

Norway

The Greater Ekofisk Area is located approximately 200 miles offshore Norway in the center of the North Sea.  The Greater Ekofisk Area is comprised of four producing fields: Ekofisk, Eldfisk, Embla, and Tor.  The Ekofisk complex serves as a hub for petroleum operations in the area, with surrounding developments utilizing the Ekofisk infrastructure.  Net production in 2005 from the Greater Ekofisk Area was 124,800 barrels of liquids per day and 122 million cubic feet of natural gas per day, compared with 127,400 barrels of liquids per day and 125 million cubic feet of natural gas per day in 2004.  We are operator and hold a 35.1 percent interest in Ekofisk.

 

In 2003, we and our co-venturers approved a plan for further development of the Greater Ekofisk Area.  The project consists of two interrelated components: construction of a new platform, Ekofisk 2/4M, and modification of the existing Ekofisk and Eldfisk complexes to increase processing capacity.  Construction began in 2003, and production from the new 2/4M platform commenced in October 2005.

 

We also have ownership interests in other producing fields in the Norwegian sector of the North Sea and Norwegian Sea, including a 24.3 percent interest in the Heidrun field, a 10.3 percent interest in the Statfjord field, a 23.3 percent interest in the Huldra field, a 1.6 percent interest in the Troll field, a 9.1 percent interest in the Visund field, a 6.4 percent interest in the Grane field, and a 2.4 percent interest in the Oseberg area.  Production from these and other fields in the Norwegian sector of the North Sea and the Norwegian Sea averaged a net 81,900 barrels of liquids per day and 150 million cubic feet of natural gas per day in 2005, compared with 87,700 barrels of liquids per day and 176 million cubic feet of natural gas per day in 2004.

 

We and our co-venturers received approval from Norwegian authorities in 2004 for the Alvheim North Sea development.  The development plans include a floating production storage and offloading vessel and subsea installations.  Production from the field is expected to commence in 2007.  We have a 20 percent interest in the project.

 

In 2005, approval was received from the Norwegian and U.K. authorities to proceed with a further development of the Statfjord area.  The project, named the “Statfjord Late-Life Project,” is a gas recovery project, with production startup targeted for the late-2007 time frame.  We have a combined Norway/U.K. 15.2 percent interest in this project.

 

Transportation

We have interests in the transportation and processing infrastructure in the Norwegian North Sea, including a 35.1 percent interest in the Norpipe Oil Pipeline System, a 2.3 percent interest in Gassled, which owns most of the Norwegian gas transportation system, and a 1.6 percent interest in the southern part of the planned Langeled gas pipeline.

 

Exploration

Four exploration wells were completed in 2005.  Three near-field exploration wells were drilled in the Oseberg and Troll licences, one of which was successful.  An additional well was drilled in the Voring Basin and tested hydrocarbons.  Although the well was expensed as a dry hole, we plan to conduct further appraisal.  A further near-field well was started in 2005, located within the Troll license, with operations continuing into 2006.

 

EXCERPTS ON THIS PAGE:

10-K
Feb 23, 2007
10-K
Feb 27, 2006
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