UPDATE:Total's Victoria Gas Find Smaller Than Thought
September 17 2009 - 6:28AM
Dow Jones News
Total's (TOT) Victoria gas find offshore Norway is smaller than
originally thought, the country's petroleum directorate, or NPD,
said Thursday.
"Preliminary estimates indicate that the discovery may be within
the range of 20-60 billion standard cubic meters of recoverable
gas," the NPD said.
That compares with earlier estimates of 89 billion cubic meters
of gas, which would have been Norway's largest undeveloped gas
discovery, the NPD said.
Total recently completed an appraisal well at the prospect in
the Norwegian Sea which clarified the extent of the reserves.
"The result is of course disappointing. The most important
things now is to give the operator time and opportunity to analyze
samples and data to ascertain what this means" for the development,
said NPD's Director for Exploration Sissel Eriksen.
The results from the well were being watched closely because
they were considered decisive for this section of the Norwegian Sea
where several gas discoveries have been made including Luva, Onyx,
Gro and Marulk.
The finds have raised hopes of a new Norwegian gas production
hub, supporting new infrastructure in the area, but Total's
disappointing revision means a decision on developing will take
longer than assumed.
Victoria is a high pressure, high temperature reservoir, meaning
it would already be more difficult and costly to develop.
The well was the deepest ever in the Norwegian shelf, reaching
5,664 meters below the surface of the sea. Total owns 40% of
Victoria, while StatoilHydro ASA (STO) and Eni Norge (E) each own
30%.
Directorate Web site: www.npd.no
-By Elizabeth Adams, Dow Jones Newswires; +44 (0) 20 7842 9386;
elizabeth.adams@dowjones.com