01 Oct 2018
Plan for Development and Operation for Nova approved
CAIRN ENERGY PLC (“Cairn” or “the Company”)
The enclosed announcement has been reported by Wintershall Norge AS (Operator) with regards to the Nova development in which Cairn has a 20% working interest.
Analysts / Investors
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Linda Bain, Corporate Affairs
Cairn Energy PLC
Tel: 0131 475 3000
Patrick Handley, Will Medvei
Brunswick Group LLP
Tel: 0207 404 5959
NOTES TO EDITORS
Cairn is one of Europe's leading independent oil and gas exploration and development companies and is listed on the London Stock Exchange. Cairn has discovered and developed oil and gas reserves in a variety of locations around the world.
Cairn’s business operations are now focused on frontier exploration acreage in North West Europe, North West Africa and the North Atlantic, underpinned by interests in development assets in the North Sea. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Norway, Senegal and Mexico.
For further information on Cairn please see: www.cairnenergy.com
Field development continues towards first oil in 2021
Stavanger. Wintershall Norge AS and its partners have now received approval by the Ministry of Petroleum and Energy for the plan for development and operation (PDO) for the Nova development, about 120 kilometers northwest of Bergen, Norway. Germany’s largest internationally active crude oil and natural gas producer, and the partnership, submitted the PDO to the Ministry on May 16, 2018. The approved development solution for the Nova field involves two subsea templates located on the ocean floor tied back to the nearby Gjøa platform, operated by Neptune Energy.
“This is another important landmark for Wintershall Norge. We believe in Norway and we are showing again through the Nova development that we are prepared to back up our commitment with investment. Good dialogue with the Norwegian authorities is a crucial component of our success in this country. We regard this approval as recognition of our ability to deliver projects on the Norwegian Continental Shelf,” said Hugo Dijkgraaf, Wintershall Norge Managing Director.
The Nova field will be developed as a subsea tie-back connecting two templates to the Gjøa platform for processing and export. Gjøa will also provide lift gas to the field and water injection for pressure support. Power for the Nova field comes via the Gjøa platform from shore. This sustainable development solution is a win-win situation: Instead of building a new installation, the connection to the nearby platform will save costs for Wintershall and extend the economic life-time of the existing infrastructure.
Creating value in Norway
“By developing this cost-efficient solution, we are tapping into experience we already have as operator of two underwater fields and are strengthening our position as an expert in subsea developments. At the same time, we are creating value for the partnership, our suppliers and the Norwegian society,” said André Hesse, Wintershall Nova Project Director.
A significant number of contracts have already been awarded for the Nova project, notably the subsea production system to Aker Solutions, the contract for pipeline and subsea construction to Subsea 7, and the rig contract to Seadrill.
Third operatorship on the NCS
Investment (CAPEX) in the Nova development is estimated at around EUR 1.1 billion (NOK 9.9 billion). Recoverable reserves of the field are estimated around 80 million barrels of oil equivalent (boe), of which the majority is oil. The planned production startup for Nova is in 2021.
Nova will be Wintershall Norge’s third operated subsea field, after Vega which is also tied back to the Gjøa platform (Wintershall’s share: 20 percent) and Maria in the Norwegian Sea.
Nova was discovered in 2012 and is situated in the northeastern North Sea approximately 20 kilometers southwest of the Neptune Energy-operated Gjøa platform. Located in Quadrant 35, Nova profits from this region’s rich infrastructure. The Nova field is principally located in production license PL 418.
Wintershall Norge AS (operator) owns 35 percent, Capricorn Norge AS (a fully owned subsidiary of Cairn Energy PLC) 20 percent, Spirit Energy 20 percent, Edison Norge AS 15 percent and DEA Norge AS 10 percent.
Wintershall Norge AS is one of the largest oil and gas producers in Norway with a daily production of around 100,000 barrels of oil equivalent. The company owns about 50 licenses on the Norwegian Continental Shelf, more than half of them as the operator. In 2017, the Maria field became the first development on the Continental Shelf that Wintershall brought into production as the operator. The next planned project is Nova (formerly Skarfjell). The company is also the operator of the producing fields Brage and Vega. Wintershall Norge AS employs around 500 staff and belongs to Wintershall Holding GmbH.
Wintershall Holding GmbH, based in Kassel, Germany, is a wholly owned subsidiary of BASF in Ludwigshafen. The company has been active in the extraction of natural resources for 120 years, and in the exploration and production of crude oil and natural gas for over 85 years. Wintershall deliberately focuses on selected core regions where the company has built up a high level of regional and technological expertise. These are Europe, Russia, North Africa, South America, and increasingly the Middle East region. The company wants to expand its business further with exploration and production, selected partnerships, innovation and technological competence. Wintershall employs about 2,000 staff worldwide from 50 nations and is now Germany’s largest, internationally active crude oil and natural gas producer.
Wintershall. Shaping the future