DEA has submitted the plan for development and operation (PDO) for the Dvalin field (previously named Zidane) to the Ministry of Petroleum and Energy in Norway.
Dvalin will be the company’s first operated field development project in Norway.
The Dvalin license plans to produce a total volume of approximately 18.2 Bcm of natural gas from two reservoirs. The development cost is estimated to US$1.23 billion (€1.1 billion), with planned production start in 2020.
Dvalin will be developed with a four well subsea template, which is connected to the Heidrun platform. At Heidrun, the gas will be partly processed in a new module, before the gas is transported in a new export pipeline to Polarled, going to the Nyhamna onshore gas terminal. At Nyhamna, the gas will be processed and transported to the European market.
“Together with our partners, we have come up with a development solution with sustainable long term economics in an environment of low market prices,” said Hans-Hermann Andreae, managing director of DEA Norge.
Creative work in the project team and market developments in the supplier industry have made it possible for the partnership to make the project economical sound.
“Over the last few years we have managed to reduce cost by more than 20%. As a consequence, DEA has got the opportunity to open a new area in the Norwegian Sea for gas production and export,” said Andreae.
The Dvalin field is located in PL435, blocks 6507/7/9 and 6507/8 in the Norwegian Sea, approximately 15km northwest of Heidrun and 290km from Nyhamna in Mid-Norway.
In a statement on 4 October, the Ministry of Petroleum and Energy (MPE) and the Norwegian Petroleum Directorate (NPD) acknowledged received the PDO.
"The NPD is interested in ensuring that profitable projects are developed and, where possible, that such projects utilize existing infrastructure. We expect that realization of the resources in Dvalin will contribute to create value, both for the Norwegian society and for the licensees on Dalin, Heidrun and Polarled. In addition, the development of Dvalin could provide exciting opportunities for further development of other resources in the area," says Kalmar Ildstad, assistant director for development and operation in the Norwegian Sea.
DEA Norge (40%) is operator of license PL435 with partners are Edison (20%), Maersk (20%) and OMV (20%). The development is subject to the approval from the Norwegian authorities.
Image: Dvalin license/DEA