Shell Takes Over Oil Fields Offshore Norway

Published at 09:11AM - 26/08/16

The Norwegian Petroleum Safety Authority (PSA) has approved A/S Norske Shell’s request to use its facilities offshore Norway as Shell takes over as the operator of oil fields previously belonging to the BG Group.

The decision by the Norwegian offshore safety body follows a change of operatorship on the fields located offshore Norway, following Shell’s acquisition of the BG Group.

“A/S Norske Shell (Shell) is taking over the operatorship of Knarr and Gaupe from BG Norge AS (BG),” the PSA informed in a statement.

Shell Takes Over Oil Fields Offshore Norway

According to PSA, Shell had applied for consent to use the facilities in the Norwegian sector of the North Sea on July 3, even though the consent for their use had been originally granted to the previous operator.

Shell acquired the BG Group in February, in a deal described as the largest oil and gas acquisition of the decade, making Shell the world’s biggest deepwater and liquefied natural gas (LNG) producer and alongside giant ExxonMobil in size.

Gaupe is an oil and gas field located near the boundary with the UK Continental Shelf (UKCS), approximately 12 kilometres (7.45 miles) south of the Varg field.

The oil field is in 90 metres (295.27 feet) of water and has been developed using two subsea wells, with the well stream taken to the Armada facility on the UK shelf.

The BG Group had received consent to use the seabed facilities and pipelines on 15 February 2012 and production had begun in March of that year.

Shell to Start Drilling Offshore Norway

Knarr is an oil field located in the North Sea, approximately 50 kilometres (31 miles) north-east of the Snorre field.

The Knarr field is located in 410 metres (1,345 feet) of water and has been developed using subsea wells and a floating production and storage offloading unit – the Petrojarl FPSO.

The oil is loaded from the FPSO unit into tankers and gas is piped to the St. Fergus gas terminal in Scotland.

The BG Group had received consent to use the production facility and seabed facilities on 3 November 2014 and production from the field began in March 2015.