Norway Approves $1.85 Billion Maria Oil Field Development
September 04 2015 - 9:32AM
Dow Jones News
By Kjetil Malkenes Hovland
Norway's government said Friday it had approved the plan for
Wintershall's NOK15.3 billion ($1.85 billion) Maria oil field in
the Norwegian Sea, a welcome shot in the arm for the country's
struggling oil-field services sector.
"The development of the Maria field means work for many supplier
companies with surplus capacity," said Tord Lien, Norway's Minister
of Petroleum and Energy.
Oil companies in Norway expect to cut spending by 10% this year
from an all-time high last year, and oil services companies are
shedding jobs by the thousands as orders wane. Earlier this week,
FMC's Norwegian arm said it would shed 550 jobs--200 more than
previously announced--and Aker Solutions ASA said it was shedding
500 jobs.
The Maria field is estimated to hold 180 million barrels of oil
equivalent, the majority crude oil. The field is situated in the
Norwegian Sea, about 230 kilometers off the mainland and 20
kilometers from the existing Kristin field. The project has already
generated several contracts to companies including FMC and Subsea
7.
"In a challenging oil price environment, we are moving ahead
with the execution of this key development project," said Hugo
Dijkgraaf, Wintershall's Maria project director. German oil and gas
company Wintershall is a unit of BASF (BAS.XE).
Wintershall is operator of the Maria field with a 50% ownership
stake. Partners include Norway's state-owned Petoro AS with a 30%
stake and Centrica with a 20% stake. Expected production start is
2018.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
(END) Dow Jones Newswires
September 04, 2015 09:17 ET (13:17 GMT)
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