Statoil Staring at Korpfjell 'Giant'
Wednesday 16 November 2016
Statoil’s promising Korpfjell prospect in the Barents Sea off Norway potentially could be three to four times bigger than the country’s giant Johan Sverdrup field, according to an analyst.
The state-controlled explorer intends to drill a first wildcat next year at the prospect in the south-east Barents near the maritime border with Russia as part of a planned campaign of five to seven wells in the frontier Arctic play.
It has been dubbed “the most exciting exploration well in decades” by analyst Jarand Rystad, managing partner of Oslo-based research firm Rystad Energy, who estimates it could hold 2.2 billion barrels of oil equivalent – and up to a staggering 10 billion boe – in potential resources.
He stated in a presentation the prospect has structural closures that are three to four times the size of the Johan Sverdrup field presently under development by Statoil in the North Sea, which has a resource estimate of 1.7 billion to 3 billion boe.
While Korpfjell was previously expected to contain only gas, fresh 3D seismic shot over the structure has shown indications of liquid hydrocarbons.
The formation is believed to be an old river delta, with sands 50 metres in depth, that was subsequently filled with oil and gas following several geological events.
The analyst likened the reservoir to that at OMV’s Wisting Central discovery in the Barents’ northerly Hoop area, saying it is “shallow but with excellent reservoir characteristics”.
Statoil is committed to drill two firm wells, plus one contingent well, in its operated production licence 859 that hosts the prospect, awarded under Norway’s 23rd licensing round earlier this year that opened the south-east Barents area.
The company has a 30% operating stake in the licence located in the north-eastern corner of the Norwegian continental shelf, with partners Chevron (20%), Petoro (20%), ConocoPhillips (15%) and Lundin Norway (15%).
Statoil was earlier reported to already have a rig on contract that would be suitable for drilling of the Barents wells, part of a total 17-well campaign off Norway next year.
A possible candidate is Songa Offshore’s Category D midwater semi-submersible Songa Enabler, which has been drilling at the Snohvit field in the Barents but is set to be suspended at the end of this month until April next year.
Statoil’s campaign is therefore unlikely to provide fresh work for any of the country’s increasing number of idle rigs as lay-ups mount for hard-pressed contractors amid a slump in drilling activity that has hit utilisation and dayrates.
As many as 18 floaters – more than half the total operating fleet of 30 such rigs off Norway – are set to be either laid-up or suspended by year-end due to a contract drought, as well as contract terminations and suspensions by Statoil and other players.
The head of the Norwegian Shipowners’ Association, Sturla Henriksen, told news wire Bloomberg the rig market situation could go “from bad to worse” in 2017 as more rigs come off contract, which could lead to as many as three of four floating rigs – semisubs and drillships – being out of work by the end of next year.