Repsol to close down Varg field off Norway

Repsol closing down Varg field

Spanish oil major Repsol has reportedly asked for a permission from the authorities to plug eight wells and shut down the Varg field, located in the Norwegian sector of the North Sea. 

Repsol is the operator of the field with 65% interest and the partners are Petoro with 30%, and Det norske oljeselskap with 5% interest.

The field is developed at a depth of 84 meters with a wellhead platform, Varg A, and a production ship, Teekay’s Petrojarl Varg FPSO, with integrated oil storage. These are linked together with a 1200-metre production and injection pipeline and a control umbilical. The oil is exported via shuttle tankers. The production started in December 1998.

According to Teekay’s spokesperson, as Repsol has given Teekay notice of termination of the Varg contract with effect from August 1, 2015, Petrojarl Varg is now scheduled to leave the field by August 1, 2016.

“At the moment it looks like the vessel will go into layup pending redeployment on another field,” the spokesperson added.

As for the reason for shutting down the field, the news website said that the field was no longer considered profitable.

The contract with Teekay for the FPSO Petrojarl Varg was cancelled back in November 2015. To remind, only several months earlier, in August 2015, Teekay and Talisman, now owned by Repsol, inked a three-year contract extension for the Varg FPSO, that was supposed to last until June 30, 2019.

Regarding further employment options for the FPSO Varg, the spokesperson for Teekay said: “Although Teekay continues to work actively on a number of options for redeployment of the Varg FPSO both inside and outside of Norway, it has become necessary to look at our offshore manning levels.

“Consequently, a number of our colleagues working offshore on our North Sea installations will have to leave us. It is always sad to see good colleagues go, but unfortunately we have to adapt our crewing levels to these new circumstances.”

“The crews have been informed and we are evaluating next steps. Teekay is working closely with employee representatives and the relevant trade unions in this process,” the spokesperson added.

Petrojarl Varg is a ship-shaped, turret moored, FPSO delivered in 1998. The FPSO has a storage capacity of 470,000 bbls and accommodation for 77 persons.

In an e-mail to Offshore Energy Today, Repsol confirmed that the FPSO contract was terminated.

Repsol’s spokesperson added: “Reserves produced exceed three times the approved PDO reserves. However, the field is currently uneconomical, and will move into decommissioning. The planned sail away date for the FPSO is August 1st 2016.”


 

The article has been updated to contain a statement by Repsol. 

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Sep 2016 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

Oil & Gas Vietnam (OGAV) Exhibition 2016

Oil & Gas Vietnam (OGAV) 2016 is the only specialized Oil & Gas event in Vietnam that brings together an international congregation of both upstream and downstream Oil and Gas companies and also its supporting industries gathered in the heart of Vietnam’s Oil and Gas industry in Vung Tau, to showcase the latest developments in the industry.

Highlights of OGAV 2016

Oil & Gas networking Nite
Oil & Gas Technology Seminars
Vietnam Oil & Gas Conference

More Info

read more >

Pipeline Week 2016

Include the Pipeline Week as a key component of your marketing strategy. If your company has involvement in the following areas, this event…

read more >

Offshore Marintec Russia

The new event runs in even-numbered years and is a conceptual follow-up of the most famous national shelf development forum RAO/CIS Offshore…

read more >

Offshore Technology Days 2016

2016 will be a crucial year for many suppliers to an oil industry under increasing pressure. Everyone is cutting costs and scrutinizing which…

read more >

Jobs>

QC Coordinator Offshore

Do you attach great importance to quality and do you have an affinity with offshore projects? Then read about what Van Oord can offer you.

apply

Assistant Driller

Maersk Drilling Norge AS was established in 1990 and employs a staff of approximately 1000 people.

apply

Electrician

For one of our clients we are looking for a Ships Electrician. Our client is a company with worldwide activities. You will work in a rotation of 4 till 6 weeks on and off.

apply