Det norske oljeselskap (DNO) is operator and a 50% owner in production license 364. Premier Oil Norge is 50% partner in the license.
Recoverable reserves from the Froy field are estimated at 56 million barrels, with an initial production of about 28,000 barrels per day.
DNO has already entered into a heads of agreement with Teekay Petrojarl regarding lease of a jack-up production unit for the Froy field. The contractor shall build and operate the production unit, which is estimated to start producing on the Froy field during the third quarter of 2012.
The duration of the lease and operation contract will be 10 years, with an optional extension for another five years (five times one year). The agreement is based on current market terms.
Froy will be developed with a jack-up platform containing drilling and production facilities. Oil will be stored in a tank located on the seabed prior to offloading to shuttle tankers for transport to the market. The produced gas, together with water, will be injected into the reservoir as pressure support, thus enhancing recovery, said DNO.
The field will be produced with eight wells. A drilling unit on the platform renders it possible to maintain an active development program throughout the field’s lifetime. On a license basis, investments are expected to amount to NOK2.1 billion from 2012, this is mainly related to drilling activities. The field will be operated from Trondheim with base functions located in Stavanger.
