On behalf of the licence, Centrica has submitted the Plan for Development and Operation (PDO) of the Oda field to the Ministry of Petroleum and Energy. The partnership will invest about NOK 5.4 billion (£510million) in the development of the Oda field, which is scheduled to start production in 2019.
“In cooperation with our partners and reliable suppliers, we have developed one of the most robust projects on the Norwegian Shelf,” said Dag Omre, General Manager of Centrica in Norway.
Over the last couple of years, the project team has managed to reduce investment costs by more than 40 per cent.
Mr Omre said: “Times are challenging in the oil and gas sector, and it is therefore very satisfying to deliver a plan for development and operation that will generate increased activity in the industry. Oda will contribute about 5,500 jobs over the field’s lifetime, and we expect to award several contracts soon.”
The Oda oil field (previously called Butch) was discovered in 2011 in the southern part of the Norwegian North Sea, about 13 kilometres east of the Ula field. The Oda field will be developed with a seabed template, tied-in to the Ula platform. From here, the oil will be exported to Ekofisk and onward via Norpipe to the Teesside terminal in the UK. The produced gas from Oda will be injected in the Ula reservoir to improve oil recovery from the Ula field.
The subsea tie-in is an innovative solution, which involves reusing the Oselvar infrastructure on the Ula platform. The chosen concept will provide safe, predictable and cost-efficient delivery of the Oda development, and will also contribute to improved recovery from Ula.
Oda’s recoverable reserves are estimated at 48 million barrels of oil equivalent, of which 95 per cent is oil. Production is scheduled to start in 2019, with a peak production of about 35,000 barrels of oil equivalent per day.
Since entering the Norwegian market in 2006, Centrica has grown into one of the top 10 largest oil and gas producers on the Norwegian Shelf. Oda is Centrica’s first development as an operator in Norway.
Mr Omre said: “We have laid down the building blocks, one-by-one, and have a good foundation for the future. I am proud that we are the operator for the Oda development. Norway is a priority area for Centrica’s oil and gas activities and we plan to continue investing.”
Centrica is the operator for Oda and has an ownership interest of 40 per cent. The partners are Suncor Energy Norge (30 per cent), Faroe Petroleum (15 per cent) and Tullow Oil Norge (15 per cent).