“This is the start of a new chapter in Norway’s petroleum story. The expected recoverable resources in the Edvard Grieg, Draupne and Johan Sverdrup fields total 2.8 billion barrels of oil equivalents. Given the current oil price and exchange rates, this equates to around NOK 1,900 billion gross. These is an enormous sum, which will benefit all of Norwegian society,” says Minister of Petroleum and Energy Ola Borten Moe.
The development solution chosen by the Ministry will ensure the efficient development of the whole area.
An agreement has been concluded with the neighbouring Draupne field to ensure the coordination of production from the two fields. At the same time, studies are being conducted to identify the best export solutions for oil and gas from this part of the Utsira formation. The Ministry has proposed that development approval should be conditional upon the use of a coordinated land-based power-supply solution, if such a solution is found to be appropriate for this part of the Utsira formation. The production platform will employ local power generation, but is also equipped to utilise a land-based power supply.
“The development solution takes important considerations into account, ensuring that good solutions are adopted for coordination, export and land-based power supply. The Ministry has also proposed conditions which mean that a coordinated land-based power-supply solution can be implemented at a later date, if such a solution is appropriate. This is good resource management, and ensures the efficient development of this exciting part of the Utsira formation,” says Minister of Petroleum and Energy Ola Borten Moe.
The Edvard Grieg field was discovered in 2007, and lies in the middle of the North Sea, 180 kilometres west of Stavanger. The field is being developed using a bottom-mounted platform for processing oil and gas. The development costs total NOK 24 billion.
“Through this development, a new company will begin operating an independent development on the Norwegian continental shelf. Greater diversity on the continental shelf is positive, and in line with Norway’s long-term petroleum policy,” says Minister of Petroleum and Energy Ola Borten Moe.
Until now, the rights holders have referred to the find as Luno, but the Ministry has decided to rename it the Edvard Grieg field. Grieg’s compositions contributed to the creation of a body of recognisably Norwegian music that became a force in the development of a Norwegian identity, and thus also a force for Norway’s independence from Sweden. Edvard Grieg gave Norway a national and international musical voice, and helped to build the nation’s identity.
The rights holders in the Edvard Grieg development are Lundin Norway AS (50%), Wintershall Norge ASA (30%) and RWE Dea Norge AS (20%).