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>

<< Jun 2016 >>
MTWTFSS
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 3

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 >

12th Annual Deepwater Intervention Forum

The 12th Annual Deepwater Intervention Forum presented a first-hand look at emerging and proven technologies which offered real-world…

read more >

ONS 2016

The ONS Conference is known as one of the world’s most important oil, gas and energy fora, giving the delegates a sneak peek into the future…

read more >

SMM 2016

SMM Hamburg 2016 is the leading international forum of the maritime industry.SMM offers the unique chance for exhibitors and trade visitors…

read more >

Jobs>

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

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