Repsol Brings Norway’s Yme Oil Field Back On Stream After 20 Years
Spanish energy firm Repsol REP.MC started oil production at Norway’s Yme field on Monday, the company said in a statement, applying new technology to bring the North Sea petroleum reservoir back on stream 20 years after it was first abandoned.
Norway’s Equinor EQNR.OL closed Yme in 2001 after only six years of production amid a plunge in crude oil prices, while Canada’s Talisman Energy later gave up an attempt to revive the field.
“Achievement of first oil is a true testament to the lean operations of the Yme New Development project,” Repsol said, adding that it was made possible “through the use of new technology and innovation”.
The Spanish firm and its partners aim to produce about 63 million barrels in extra recoverable oil reserves, with plateau output seen at 56,000 barrels of oil equivalent per day (boepd), the company said.
“COVID-19 has unfortunately caused the project to be delayed and more costly than expected, but we have still managed to deliver the project in a safe and reliable way,” said Vidar Nedreboe, head of Repsol’s Norwegian operations.
Repsol has 55% stake and operates the field, while Polish Lotos LTSP.WA has 20%, Norway’s OKEA 15% and Kuwaiti KUFPEC the remaining 10%.
“With production start in highly favourable market conditions, Yme will add significant positive cash flows going forward and further strengthen OKEA’s positioning for the next growth phase,” OKEA Chief Executive Svein Liknes said.
The Norwegian independent said it expected its share of net production from Yme to average about 5,600 boepd for the next 12 months, compared to its total production in the third quarter of 2021 of 16,315 boepd.
Norwegian authorities approved the redevelopment plan for the Yme field in 2018 after an earlier project launched by Canada’s Talisman Energy was abandoned over technical problems.
Talisman was acquired by Repsol in 2015.
Repsol will produce oil using a mobile drilling rig, Maersk Inspirer, modified to serve as a production facility, a more economic solution compared to the previous plan to have a fixed platform.
In addition, price of North Sea oil LCOc1 surged to a multi-year highs in October as economies recover from pandemic-induced slumps.O/R
Since the plan’s approval in 2018, Yme’s startup has been delayed several times however and its costs rose by a third to 11.9 billion Norwegian crowns ($1.42 billion), Norway’s fiscal budget for 2022 showed earlier this month.
Source: Reuters (Reporting by Nerijus Adomaitis, editing by Terje Solsvik and David Evans)