BlueNord has today announced its preliminary production figures for October 2023.

The Company had a preliminary production in October of net 26.1 mboepd. The production during the month was strong with a preliminary operating efficiency above 95% across all producing hubs. The Gorm production potential continues to be positively affected by the re-stimulation campaign in June, and the Dan production potential is higher than expected due to re-stimulation campaigns carried out earlier this year as well as the ongoing WROM campaign. BlueNord reiterates its annual production guidance of 24.5 – 25.0 mboepd.

Denmark operations

Name change
In March 2023, Norwegian Energy Company (Noreco) board of directors announced a rebranding and change of name from Norwegian Energy Company ASA to BlueNord ASA. 

In October 2018, Noreco's wholly owned subsidiary, Altinex AS entered into an agreement to acquire Royal Dutch Shell Plc’s upstream assets in Denmark. Through the transaction, Noreco becomes the second largest oil and gas producer in Denmark and a considerable E&P company.

This acquisition establishes Noreco as an E&P company on the Danish Continental Shelf (“DCS”), and positions it as the second largest oil and gas producer in the country. Noreco will post completion have a 36.8% non-operated interest in the Danish Underground Consortium (“DUC”) with assets that comprise 15 fields in four producing hubs; Halfdan, Tyra, Gorm and Dan. DUC is a joint venture between Total (31.2%), Shell (36.8%), Chevron (12.0%) and Nordsøfonden (20.0%) cooperating to recover oil from the Sole Concession holder’s area of the Danish North Sea. Total recently announced the acquisition of Chevron’s (12.0%) interest, which remains subject to approval of partners and relevant authorities. The Sole Concession covers 1,635.7 km² of the DCS. DUC is operated by Total which has extensive offshore experience in the region and worldwide. 

Included in the transaction are proven and probable (2P) reserves of 209 million barrels of oil equivalent (mmboe) based on an independent CPR assessment as per year-end 2017, of which 65% are liquids. Further, Noreco estimates significant reserves and production growth coming from existing resources (discoveries, EOR initiatives & new projects). Shell’s share of production from DUC in 2017 was 67 thousand barrels of oil equivalent per day (mboepd). Noreco expects to maintain strong production in the years to come. The DUC portfolio has attractive economics, with 2017 opex of USD 13 per boe. As the Tyra hub is being redeveloped, the portfolio will be revitalised and offer improved economics accompanied by prolonged field life. Liquids production volumes are protected through a guarantee lasting from signing of the Acquisition through 2020. 

The consideration of the transaction is USD 1.9 billion with effective date as of 1 January 2017, with pro contra adjustment currently estimated by Noreco to USD 0.7 billion. 

In August 2019, Shell Overseas Holdings Limited completed the sale of its shares in Shell Olie-og Gasudvinding Danmark B.V. (SOGU), holding a 36.8% non-operating interest in the Danish Underground Consortium (DUC), to Noreco.

Key Facts

• BlueNord is a North Sea E&P company and the second largest producer in Denmark with a 36.8% ownership in The Danish Underground Consortium (“DUC”).
• The DUC is a partnership between the operator Total (43.2%), Noreco (36.8%) and Nordsøfonden (20%).
• The Tyra Field is the largest gas condensate field in the Danish Sector of the North Sea. Its facilities process more than 90% of the gas produced in Denmark, as well as the entire gas production of the DUC.
• Due to seabed subsidence, the Tyra field required a redevelopment, and in September 2019 production was temporarily shut in.  
• The Tyra Redevelopment consists of three main elements: Removal and decommissioning of the prior Tyra platforms, reuse and 13 meters extension of the current jackets at six platforms that will have new topsides and a totally new process platform and a new accommodation platform. The project is, to date, the largest project carried out on Danish Continental Shelf. 
• When back in operation, Tyra will reach peak production of approximately 60,000 boepd.
• The redeveloped Tyra will be a high-tech production and export center that will secure gas supply for many years ahead. At peak production, the redeveloped Tyra will provide enough gas to supply the equivalent of 1.5 million Danish homes.

Tyra Redevelopment update (November 2020):

• As a consequence of the ongoing COVID-19 pandemic, first production from the Tyra Redevelopment is expected in Q2 2023 instead of 2022 as previously communicated.
• The project remains on track to be delivered within budget
• Due to COVID-19, local governmental imposed restrictions at the fabrication yards have impacted the schedule of the new Tyra topsides, including through the global supply chain delivering key components for the topsides. As a direct consequence of this impact the installation of the four new topsides is rescheduled from 2021 to a 2022 installation-window. First production from the redeveloped Tyra is then expected in Q2 2023.

Halfdan Infill Wells
In December 2022, Noreco announced a Final Investment Decision (“FID”) on two infill wells, where the first well is expected to be drilled by the jackup rig Shelf Drilling Winner in the early spring of 2023. 

The two wells will be drilled at the Tor reservoir in the Halfdan North East area, located in the central part of the Danish North Sea. Both the wells are expected to increase gas production from the Halfdan field, with plateau production expected during autumn 2023. The first well alone is expected to have an initial production rate of 3 mboe/day net to Noreco where approximately 75% is gas. The expected gain from the infill wells is approximately 2.9mmboe net to Noreco, of which c. 50% is gas.