The Norwegian Gassled
DONG Energy has a 0.68% stake in the Norwegian Gassled gas pipeline network. This co-ownership is strategically important, as it provides access to infrastructure and, consequently, the connected markets in the UK and continental Europe. The network owners have preferential rights to book capacity in proportion to their ownership interests. Gassled will be expanded as more fields are developed in Norway. This will provide opportunities for entry into new markets and conclusion of new commercial contracts, as the gas can be channelled to markets that add more value for DONG Energy.
Trym
DONG Energy took over the operatorship of licence PL147 Trym on the Norwegian shelf in 2008. The development plan for the field submitted in 2008 is pending approval by the Norwegian authorities. The field primarily contains gas, and development with a seabed production installation is planned. This will be tied in with the Danish Harald platform.
Oselvar
At the start of 2009, DONG Energy also expects to submit a development plan to the Norwegian authorities for licence PL274 Oselvar, of which DONG Energy has the operatorship. The development of Oselvar and Trym will be the first two licences on the Norwegian shelf on which DONG Energy has an operatorship role.
Ula
DONG Energy increased its stake in the Norwegian Ula oil field from 5% to 20% in 2008. Ula functions as a production platform for the Tambar and Tambar Øst fields and is situated in one of DONG Energy’s core areas within exploration and production. The Ula field has a long life expectancy and could become central to the development of other fields in the area, including the Oselvar find.
Alve
Development of the Alve field in the Norwegian Sea in Mid-Norway commenced in 2007, and production started up in early 2009. The field has been developed with seabed installations that are tied in to an oil production vessel on the nearby Norne field. The gas from the field is transported via Gassled.
Hejre
In 2008, DONG Energy acquired a further 10% of licence 5/98 Hejre in Denmark, increasing its stake in the Hejre find from 50% to 60%. DONG Energy has the operatorship of this licence. The Hejre find primarily contains oil, but also contains wet gas, which requires the establishment of special technical installations for exporting the gas that are not yet available in Denmark. To achieve the optimum solution, DONG Energy is exploring several options, including export via Danish, Norwegian and Dutch infrastructure. The outcome of these studies will determine a final development plan for the field.
Siri area
DONG Energy operates in the Siri area in the Danish sector of the North Sea, and the authorities and licence partners approved a development plan for Nini Øst in this area in 2008. The Nini Øst field is being developed as an unmanned satellite platform, and development is proceeding to plan. The field is expected to go on stream at the end of 2009. In connection with the development a new pipeline is being laid to the Nini platform that will be able to contribute to extending production from the Siri area.
West of Shetland
In the UK, more specifically the West of Shetland area, planning of the development of licences P911 Laggan and P1159 Tormore continued in 2008. Together with other oil companies, DONG Energy has been participating in an evaluation of the area’s long-term needs for gas and oil transportation capacity. Development of the area will require relatively heavy capital expenditure, including in infrastructure, due to its location far from commercial markets, coupled with deep seas and challenging weather conditions.
