Norway OKs Dvalin Development
Norway’s petroleum ministry March 21 approved the Dvalin field partners' plan for development and operation.
Minister Terje Soviknes said it provided yet more proof that the industry has succeeded in reducing costs and increasing the profitability of Norway's resources.
Dvalin, in the Norwegian Sea, is expected to cost more than Nkr10bn ($1.2bn) at 2016 prices to develop, with start up expected in 2020. Recoverable reserves are 18.2bn m³ gas and 2.5mn barrels condensate.
Dvalin will be developed as a subsea tie-back to a new process module on the Heidrun platform. Partly processed gas will be sent via the new Polarled export pipeline to Nyhamna, onshore mid-Norway, and thence to the UK and Europe.
Artist's illustration of the Dvalin development (Credit: DEA)
“This approval is a major milestone for the Dvalin project, and we are committed to develop the project and start production in 2020,” said Hans-Hermann Andreae, DEA Norway managing director.
PL435 (Dvalin) licensees are DEA (owned by Russia-owned fund LetterOne) as operator with 55%, Norwegian state-owned Petoro 35% and EDF's Italian subsidiary Edison with 10%. DEA noted that, just after the PDO was submitted in October 2016, major contracts were awarded to Aibel, Aker Solutions and Technip. Engineering and detailed planning are currently carried out.