Maersk confirms North Sea field approval

martin pedersen, maersk oil uk

Norwegian and UK authorities sign off on Flyndre-Cawdor development straddling maritime border

Maersk Oil has confirmed receipt of approval from both Norwegian and UK authorities for the development of a pair of fields that straddle the maritime border between the two countries.

The Danish operator was given the go-ahead to develop Flyndre-Cawdor in the central North Sea.

Upstream reported on Tuesday that Maersk had won approval from Norwegian authorities for Flyndre, which is about 38 kilometres west of the Ekofisk field.

On Wednesday Maersk said the UK and Norwegian authorities have signed off on the development of both fields.

Blocks 30/13 and 30/14 in the UK North Sea contain Cawdor and some of Flyndre, while Block 1/5 in the Norwegian part of the North Sea hosts just Flyndre.

Maersk Oil UK managing director Martin Rune Pedersen said: “Approval of this plan supports our long-term strategy for growth and our aim to double production in the UK North Sea by 2020.”

The Flyndre field is estimated to hold 2.5 million barrels of oil and production is seen peaking at 10,000 barrels per day. The Danish operator intends to develop it and Cawdor as a subsea tieback to the Talisman Sinopec Energy UK-operated Clyde platform in the UK sector.

Total investments are targeted at Nkr3.45 billion ($580 million), with field start-up expected in the second quarter of 2016.

Cawdor will be developed initially through a single production well, with the potential for two further wells.

Maersk’s total investment in the field developments is set to come in at around £300 million ($502.74 million).

Maersk has a stake of almost 74% in Flyndre with Talisman Sinopec Energy on around 24.5%, Statoil on more than 1% and Petoro on less than 1%.

In Cawdor Maersk has 60.6% and Talisman Sinopec the remainder.

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