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Shell turns Draugen taps on

Norway's Petroleum Safety Authority (PSA) has given the go-ahead for Shell to restart productin at the Draugen field, but has not yet allowed Statoil to turn the taps back on at Snorre A.

Shell operates Draugen, which produces 80,000 barrels of oil equivalent per day.

"The (PSA) has given Shell a dispensation such as it may restart the device (platform)," the authority said in a statement released this morning.

The PSA said it had not found grounds to give Statoil a similar dispensation for its Snorre A field.

On Friday, the PSA ordered the companies to halt production at the fields, which are both on the Norwegian continental shelf, due to a lack of approved lifeboats.

"Shell has during the weekend given additional information that describes further compensating measures," the PSA said.

Its said Shell's dispensation would last until the lifeboats were upgraded to allow staff to be evacuated in accordance with the rules, and this should be achieved by 1 December at the latest.

Draugen's main shareholders are Shell, with 26.2%, Petoro (47.9%) and BP (18.4%).

The PSA said Statoil had also submitted new information on proposed steps to resolve the issues with its lifeboats, but added: "The PSA does still not find grounds for changing its earlier decision concerning this device."

On Friday Statoil said it had started work on lifeboat improvements and production would be out for seven to 10 days. The Snorre shut in will affect about 200,000 boepd, including losses at the tied-in Vigdis field.

Statoil has 15.6% of Snorre, with partners Petoro (30%), Norsk Hydro (17.7%) and ExxonMobil (11.2%).

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