In Denmark, DONG Energy has a strong position in production of oil from the Siri area (including the Nini, Nini Øst and Cecilie fields) and the Syd Arne area (including the Lulita field). Production began from Nini Øst at the start of 2010, and it is DONG Energy’s assessment that the area around the Siri field offers further potential.
Still potential in the North Sea
There is still potential for discoveries and development of fields in the Danish sector of the North Sea. As operator, Exploration & Production is working on plans to develop the Hejre field, an oil discovery with a large gas content. On the Solsort/Svane licence, the focus in 2011 will be on appraisal of the recent oil discovery on Solsort and continuation of the preparations for appraisal of the production properties of the deep-water Svane gas discovery.
Further development of the Syd Arne field
On the Syd Arne licence, a decision was made in 2010 to develop the northern part of the field (phase 3). Development has commenced and production from the first wells is expected in 2013. As the drilling operator, DONG Energy will be drilling all the new wells.
Problems with subsea water storage tank
A routine inspection at the end of 2009 revealed cracks in a water tank that forms part of the subsea tank structure at the Siri platform. A temporary solution was established that allows production to continue. DONG Energy is working on finding a solution to the problems related to the subsea tank structure on the Siri platform. A solution is necessary to maintain safe operation and is estimated to involve substantial costs.
Increasing production
Production from the Danish area was 5.2 million boe in 2010. Although Denmark is one of the more mature areas in DONG Energy’s portfolio, with limited potential for large new discoveries, Exploration & Production has been successful in discovering more new reserves suitable for development. Production is therefore expected to rise in the years ahead, once the new developments come on stream.
DONG Energy is active in the Norwegian sector of the North Sea, in the Norwegian Sea and in the Barents Sea. Exploration & Production is the operator of the Trym and Oselvar fields and commenced the development of these in 2009. Production started up in the Trym gas field at the start of 2011. The natural gas is piped from the subsea production system via the Danish Harald and Tyra platforms to the Nybro gas treatment plant in Denmark, while the light oil condensate is transported in the oil pipeline to the Fredericia terminal.
Production from Oselvar in 2012
The development of Oselvar, which is an oil and gas field, is proceeding to plan, with production scheduled for 2012. Most of the gas production from the field is expected to be transferred to the Ula licence for injection with a view to increase oil extraction from Ula. Both developments are important components of DONG Energy’s strategy to utilise existing platforms and transport systems to develop the small fields in the area.
15 wells in production on Ormen Lange
The development of the Ormen Lange field continued with the installation of a further subsea production unit, taking the number of producing wells to 15. The field is expected to be able to produce gas for many years to come, and the development will therefore continue to optimise use of the reserves.
Production from Marulk in 2012
In 2010, DONG Energy, together with the operator ENI, decided to commence the development of the Marulk gas field. This field is located in the Mid-Norway area near the Alve field, which went on stream in 2009. Marulk is expected to begin production in 2012. Production from the subsea production
units at Alve and Marulk is transported to the Norne production vessel, where the gas and oil are treated before onward transport and shipping.
The Barents Sea is part of a long-term strategy
DONG Energy was awarded its first licences in the Barents Sea in 2009 and is planning to drill its first exploration wellas operator in the area in 2011. The activities in the Barents Sea are part of the Group’s long-term growth strategy and may become an important component in the discovery and
development of oil and gas reserves that can underpin DONG Energy’s production in the long term.
Total production 2010
Production in Norway was 19.2 million boe in 2010, with gas making up 77%. Production from the Ormen Lange field was 14.7 million boe. Oil production came from the Ula, Gyda and Tambar fields.
The West of Shetland area is DONG Energy’s focus area for its oil and gas activities in the UK. DONG Energy has been active in this area since 2000 and has participated in all significant finds in the area.
Development with essential transport system
In 2010, DONG Energy, together with the operator Total, decided to develop the Laggan-Tormore fields. The development of these fields includes establishment of a transport system for the gas via the Shetland Islands to Scotland. The focus is on the establishment of the transport system, as it will be the first in the area and therefore opens up the possibility of other existing discoveries and future discoveries in the area also using it. The Laggan-Tormore fields are expected to come on stream in 2014.
Discovery in the Glenlivet licence
In 2009, DONG Energy made the Glenlivet gas discovery in the course of its first exploration well as operator in the West of Shetland area. Glenlivet is close to Laggan-Tormore, and development plans for the field are being prepared, including the possibilities for using the transport infrastructure around Laggan-Tormore.
Discovery in the Edradour licensce
In 2010, DONG Energy, together with the operator Total, made another exploration discovery, Edradour, also close to the Laggan-Tormore fields. As with Glenlivet, development plans for Edradour are being prepared.
Maturation of Rosebank and Cambo
Efforts to mature the Rosebank and Cambo fields for development are continuing. On the Rosebank licence, successful seismic surveys were carried out in 2010, using advanced new technology, where microphones that record the seismic pressure waves are placed directly on the seabed. The findings contribute to the appraisal of the extent of the field.
On the Faroe Islands, DONG Energy participates in two licences.
In 2009, efforts were focused on appraising the exploration potential of the licences.
In West Greenland, DONG Energy participates as operator in an exploration group comprising also Exxon, Chevron and Nunaoil. Data from seismic surveys carried out in 2008 are still being appraised. It is possible that additional seismic surveys may have to be carried out in 2012 or 2013 before a decision on a possible exploration well can be made.
New licence in 2010
In 2010, DONG Energy was awarded a further licence in West Greenland together with ConocoPhillips and Nunaoil. The plan is for seismic data to be collected and other studies carried out on this licence before a decision on a possible exploration well is made.