The Ministry of Petroleum and Energy (MPE) has today received a plan for development and operation (PDO) of Delta, with the option to tie in the G-Sentral structure at a later stage. The operator Norsk Hydro Produksjon a.s has prepared the PDO on behalf of the licensees in Oseberg. This is the ninth development project under MPE consideration so far in 2005 1.

Delta is a gas and condensate discovery located in the North Sea. The deposit lies approximately 10 kilometres west of the Oseberg field centre at a water depth of about 100 meters. Delta is planned as a subsea development tied back to the Oseberg D platform for processing and export. Production start-up is expected in October 2007. The PDO is flexible and includes the possibility of phasing in the G-Sentral structure at a later stage, in October 2008 at the earliest.

I am very pleased that the licensees in Oseberg have decided to develop Delta and that they open for the possibility of developing an additional structure in the area says Ms. Thorhild Widvey, Minister of Petroleum and Energy. The discoveries will be tied in to existing infrastructure in a mature area of the Norwegian Continental Shelf. This development will contribute to sustain the level of production in the Oseberg-area in the coming years.

According to the PDO, the total development costs of Delta amount to approximately NOK 1.8 billion and the recoverable reserves of Delta and G-Sentral are estimated to 10.5 and 5 million standard cubic metres o.e. 2 respectively.

[1]To date, the MPE has approved the developments of Njord Gas Export, Skinfaks/Rimfaks IOR, Vilje, Volve, Fram Øst, Statfjord Late Life/Tampen Link, Enoch and Blane in 2005.

2 O.e. – oil equivalent.