Shell is looking to lift flagging output from its Knarr field off Norway with an infill drilling effort due to kick off early next year.
The Anglo-Dutch supermajor aims to drill a well at the so-called Knarr Infill prospect at the oil and gas field in its operated production licence 373S using semi-submersible Borgland Dolphin on 1 February, according to an application filed with the Environment Agency.
The probe, designated 34/3-A-3 AH, will be drilled in about 400 metres of water as a deviated production well to a depth of 5305 metres and has an estimated duration of 65 days.
Shell earlier this year contracted the Dolphin Drilling-owned rig for one firm well, with options for two further wells, under a charter with a fixed value of $15 million including mobilisation costs.
Dolphin disclosed this week the rig would be used for drilling and completion of a gas producer at Knarr.*
The field was brought online in March 2015 from the Knarr floating production, storage and offloading vessel after a two-year delay to start-up and was acquired by Shell the following year as part of its takeover of former operator BG Group.
Recoverable reserves at the oil and gas field were originally pegged at around 70 million barrels of oil equivalent and it was expected to have a producing lifetime of at least six years, in line with the FPSO lease with Teekay, though Shell hoped this could be extended to 10 years or more by tying in potential nearby discoveries.
However, such finds have failed to materialise, with an exploration well drilled last year at the Tyttebaer prospect to the south of Knarr coming up dry.
While the FPSO has processing capacity of 63,000 barrels of oil equivalent per day, production figures from the Norwegian Petroleum Directorate (NPD) show the field has seen a steep decline in output due to increasing water incursion after producing at an average of around 58,600 boepd in 2016.
Average daily production from Knarr had fallen to about 20,400 boe last year and so far this year is running at a rate of only around 12,000 boepd. Cumulative saleable output from the field to date currently stands at 58 million boe, according to the NPD’s fact pages website.
“Water production on the field is expected to increase further, with subsequent decline in oil production,” the agency stated.
Shell has previously carried out a 4D seismic mapping campaign at the field to identify further resources that could be tapped through production drilling.
The operator has estimated the field will be shut down early in the next decade unless infill drilling can lift output, according to an impact assessment study on decommissioning of the field issued for consultation earlier this year.
“The licensees continue to pursue alternate commercial options to maximise value creation from the field,” the NPD said.
Knarr is one of two fields still operated by Shell off Norway, along with Ormen Lange in the Norwegian Sea, after it sold its operating interest in the Draugen field, as well as a partner stake in the Gjoa field, to local independent Okea last year.
*(Editorial note: this article has been updated to include more details of the well disclosed by Dolphin).