Encouraging Exploration of Proven Gas Resources on the Norwegian Shelf

The Norwegian Petroleum Directorate (NPD) is advising companies to consider exploring established gas resources on the Norwegian shelf, which currently have no development plans. The majority of this gas is found in tight reservoirs, which presents a challenge in terms of extraction.

Arne Jacobsen, Assistant Director of Technology, Analyses and Coexistence, highlights the value of these resources, despite the uncertainty surrounding the quantity of gas, the cost of extraction, and the future prices of gas. He emphasises the substantial potential involved and the necessity of exploring these resources.

A tight reservoir refers to a reservoir with low permeability, meaning it has a limited ability to transport gas or liquid. Conventional wells are generally unable to extract gas from these reservoirs, and therefore, specific measures are required to facilitate profitable production. Techniques such as fracturing and multi-branch wells have proven to be effective in recovering resources from tight reservoirs and have been used in various locations worldwide, including the Norwegian shelf.

Jacobsen stresses the time-sensitive nature of these resources, as they must be produced before the end of the infrastructure’s lifetime. As a result, it is crucial to implement solutions for their production within the technical lifetime of existing infrastructure. NPD’s primary objective is to ensure that the oil and gas industry contributes the maximum possible value to Norwegian society through strategic resource management. Therefore, it is vital to avoid the loss of potential value and to push companies to produce challenging volumes from tight reservoirs.

An essential aspect of maximising extraction potential is through collaboration and cooperation across fields. Jacobsen advocates for exploring possibilities for cross-field cooperation, aiming to achieve economies of scale and reduce costs. He believes that companies could save money by working collaboratively on planning, vessel procurement, and well drilling in specific areas.

The NPD has previously provided estimates for resources in tight reservoirs on the Norwegian continental shelf, indicating a significant volume of untapped resources across all ocean areas on the NCS. In the North Sea, the estimated volume is substantial, with oil and gas resources located in chalk and sandstone reservoirs.

Similarly, in the Norwegian Sea, there are significant volumes of oil and gas located in sandstone reservoirs, and the NPD is exploring various technologies to enhance profitability in potential developments. The Barents Sea, while more uncertain due to being a frontier area, also holds substantial gas resources in sandstone reservoirs from the Triassic period.

The encouragement from NPD to exploit proven gas resources on the Norwegian shelf presents a compelling opportunity for companies to leverage existing technologies and cooperation to unlock the potential of these untapped resources. It underlines the importance of timely action to realize the value of these resources and contribute to the sustainable development of the oil and gas industry.
Source:
https://www.oilfieldtechnology.com/offshore-and-subsea/07122023/npd-urges-companies-to-explore-proven-gas-resources-on-the-norwegian-shelf/