Centrica and its partners have submitted a plan for the development and operation of the Oda licence to the Norwegian Ministry of Petroleum and Energy.
The licence, previously named Butch, was discovered in 2011 in shallow water 13km east of the Ula field.
The proposed development will include a four-slot seabed template with two production wells and one water injection well, which will tie back to the Ula platform.
Oil will be transported via the Norpipe system to the Teeside terminal in the UK, while the gas will be sold at the platform to the Ula for re-injection into the Ula reservoir to improve recovery.
The Oda partnership includes Centrica Norge, Suncor Energy Norge, Aker BP and Faroe Petroleum.
Graham Stewart, chief executive of Faroe Petroleum, said:“Oda is another outstanding example of the exploration success Faroe has had in Norway. I am very pleased to announce that the development plan for the Oda field has now been submitted, signifying an important step for Faroe’s future production growth. Following the successful Hyme development, Oda is the second Norwegian subsea tie-back development that Faroe has participated in, located in one of the Company’s core areas. Faroe is well-funded for the development with cash on hand and an undrawn reserve based lending facility available.
“Interests in the Ula and Oselvar fields, recently acquired by Faroe as part of the package of assets acquired from DONG Energy, provide further synergies and upside alongside Oda, where Faroe will benefit from enhanced recovery from gas injection in the Ula field along with tariff income and financial compensation from Oda owners as an Oselvar owner.”
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