FPSO contract signed for Huntington field
Stavanger, 9 November 2010: Norwegian Energy Company ASA (Noreco, OSE:NOR) is pleased to announce that the joint venture partners in the Huntington field development today signed a leasing contract for the FPSO Sevan Voyageur.
The FPSO Sevan Voyageur is currently in the Nymo yard in Arendal, Norway, where gas compression and water injection upgrades will be carried out. The FPSO will be installed on the Huntington field in the fourth quarter of 2011. Production is expected to commence in the first quarter of 2012.
"The signing of this contract represents an important milestone for the Huntington field development. Huntington will be Noreco's first producing field in the UK, and it will be a significant contributor to the company's overall production from 2012 onwards. The field also represents a stepping stone for further exploration activity in the UK, where we have built an exciting portfolio of exploration targets," says Noreco's CEO Scott Kerr.
The Huntington Field was discovered in 2007. The initial development will exploit the Forties Palaeocene reservoir with up to four production wells and two water injectors. The production facilities have a capacity of 30,000 barrels of oil per day. Natural gas will be exported via pipeline through the CATS system. Total development cost is estimated at GBP 320 million. The FPSO is leased for five years, with options for further extensions.
The Huntington Field is located in Block 22/14b in the UK part of the Central North Sea. Noreco has a 20% interest in the block, which is operated by E.ON Ruhrgas UK E&P (25% interest). The other partners are Premier Oil UK Limited (40%) and Carrizo Oil & Gas, Inc. (15%).
For further information, please contact:
Scott Kerr, CEO (+47 99 28 38 90)
Kjetil Bakken, Investor Relations Manager (+47 91 889 889)
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)