UK based operator Spirit Energy has started operations in the Oda field in the Norwegian North Sea. The opening of the production is five months ahead of schedule. The operator stated that the field is projected to be delivered by 15% lower price than estimated in the development plan submitted in November 2016 at a 413 million pounds price.
The Oda field project is the first such project by the operator in Norway and was expected to start operations in August 2019. The cooperation by suppliers and efficient drilling is being credited for the early completion of the project. The recoverable resources in the Oda oil field is estimated at 33 million barrels of oil equivalent and the peak daily production is expected to be around 35,000 barrels.
The Ula platform is connected with Oda which is 8 miles away from the Norwegian North Sea’s southern section. The connection allows the reuse of equipment on Ula platform for reducing cost. Oil accounts for 95% of the production form Oda field. The oil is exported to UK via Teesside terminal.
Rune Martinson, the managing director at Spirit Energy Norway, said: the company has started production as operator of the first development project in the Norwegian North Sea without any serious incidents. Norway is key region for the company’s business. He added that the company has every reason to be proud as they’re well below budget and ahead of the schedule.
Oda would have been way more expensive a project if the company had not reused equipment already available offshore. Reuse of equipment is the smartest strategy in the oil industry. The economic side of the Oda field project is strong.
Four firms collectively own the Oda field with Spirit energy leading with a majority stake of 40% followed by Suncor Energy Norge’s at 30%, AkerBP’s at 15% and Faroe Petroleum at 15%. The oil firm has signed long term partnerships with DNV GL, TechnipFMC, Subsea 7 and Aibel. The cooperation with contracting community helped the company deliver the project early. The Oda field was discovered by Spirit Energy in 2011.
Spirit Energy was founded in 2017 by combination of Bayerngas Norge AS and Centrica’s Production and Exploration business. The company describes itself as one of the leading independent oil and gas operators in Europe. The company employs more than 800 people.