Det norske oljeselskap has announced that it has been notified by the Norwegian Ministry of Petroleum and Energy that the work commitment in production license PL 364, which includes the Froy field in Norway, has been fulfilled. Consequently the licensees have received a 10-year extension of the license period to 2019.
According to the company, the Froy plan for development and operation (PDO) was submitted in September 2008. Submission of the PDO was part of the work commitment and a prerequisite for the license extension.
Det norske believes that the changed market conditions provide an opportunity to improve the Froy project economics by reducing development costs, and secure a larger resource base for the Froy field center. The license partners in co-operation with the Froy project turn-key contractor have started a process with the aim of reducing development and operating costs.
Three exploration wells are planned to be drilled in the vicinity of the Froy field in 2009 in Storklakken in PL 460, where Det norske is operator and holds a 52.5% interest; and East Frigg Gamma Delta in PL 442, where StatoilHydro is operator and Det norske is a 20% partner.
Both these wells have been sanctioned by the license partners. The company said that discussions are ongoing with operator Total in PL 102 for a possible exploration well adjacent to Froy.
