Plan for Development and Operation for Nova approvedField 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 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 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.
At the end of September 2018, BASF and LetterOne signed a binding agreement to merge their respective oil and gas companies, Wintershall and DEA (Deutsche Erdöl AG). Subject to regulatory approvals, the transaction is expected to close in the first half of 2019. Wintershall DEA would become the leading independent oil and gas producer in Europe. BASF and LetterOne are planning an initial public offering (IPO) for Wintershall DEA in the medium term.
Wintershall. Shaping the future.