Author: Oksana Hillervik

Pandion Energy AS and Solveig Gas Norway AS have completed their previously announced transaction, whereby Pandion Energy has sold 10% non-operated interests in PL 636, comprising the Duva oil and gas field, and PL 636B.

The Duva oil and gas field is located in the northern North Sea and was discovered in the autumn of 2016. The Plan for Development and Operation (PDO) was approved in June 2019 with first production expected in late 2020 / early 2021.

Pandion Energy has also sold 10% non-operated interests in the same licenses to PGNiG Upstream Norway AS. This transaction is expected to be completed early 2020.

Related post: 07. November 2019 – Pandion Energy divests its 20 percent share in the Duva field.

The Plan for Development and Operation of Valhall Flank West was submitted in December 2017. First steel was cut at Kvaerner’s yard in Verdal in April 2018. Just over one year later, both the jacket and the topsides were installed on the field with no additional carry-over work.

Valhall Flank West is a well head platform, that will normally be unmanned, tied back to the Valhall field centre for processing and export. The installation receives power from shore via the Valhall field centre, in line with the partnership’s strategy of minimising the environmental footprint.

Since FID, several additional wells have been sanctioned bringing the recoverable reserves from 60 to close to 80 million barrels of oil equivalent, with further drilling targets being evaluated.

Recoverable reserves for Valhall Flank West were estimated to be around 60 million barrels of oil equivalent based on the drilling of six production wells. Since then, several additional wells have been sanctioned bringing the recoverable reserves close to 80 million barrels of oil equivalent, with further drilling targets being evaluated.

The partnership has invested NOK 5.5 billion in Valhall Flank West development project, which has an estimated break-even price of USD 28.5 per barrel. Around 1,500 people have been involved in the project.

Jan Christian Ellefsen, CEO of Pandion Energy commented:

“This is truly a day to remember. Valhall Flank West is the first development project we have participated in as a partner on Valhall & Hod. We are very impressed with the execution of the project  and the way the involved parties have worked as one team, delivering one of the safest projects on the NCS, on schedule and within budget.”

For more information see press release by Aker BP.

Pandion Energy has agreed to divest its 20% share in the Duva field through two transactions, one with PGNiG Upstream Norway AS and one with Solveig Gas Norway AS, each acquiring a 10% share in PL 636 and PL 636B.

The Duva oil and gas field is located in the northern North Sea and was discovered in the autumn of 2016. The Plan for Development and Operation (PDO) was approved earlier this year, less than three years after discovery. With recoverable reserves of 88 million barrels of oil equivalent, the field is expected to produce around 30 thousand barrels of oil equivalent per day at its peak. The Duva field will be developed as a subsea tie-back to the nearby Gjøa platform, with first production expected in late 2020 / early 2021.

Our engagement in Duva represents the core of our strategy – to add value to high quality assets and mature them up the development curve – in this case with more than a 50% increase in recoverable resources since the initial discovery. With this sale, we will crystallise some of the value created in our portfolio to date, further strengthening Pandion Energy’s capacity to act on future opportunities.

Jan Christian Ellefsen, CEO of Pandion Energy, comments:

“Duva was the first discovery in our portfolio after forming Pandion Energy almost three years ago. We are pleased with the significant value created to date, having participated since the field was discovered through to development. Our engagement in Duva represents the core of our strategy – to add value to high quality assets and mature them up the development curve – in this case with more than a 50% increase in recoverable resources since the initial discovery. With this sale, we will crystallise some of the value created in our portfolio to date, further strengthening Pandion Energy’s capacity to act on future opportunities. We remain deeply committed to the Norwegian Continental Shelf and look forward to continuing to create value in our remaining portfolio and investing in new attractive opportunities on the shelf.”

The transactions are subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.

Capricorn Norge AS, operator of PL 842, has completed the drilling of wildcat well 6608/11-9. The well is reported dry. The well that was drilled about 13 kilometres northeast of the Norne field was testing a new play.

The primary exploration target for the well was to prove petroleum in Upper Jurassic reservoir rocks (the Rogn formation). The secondary exploration target for the well was to examine reservoir development in Upper Jurassic reservoir rocks (intra Melke formation sandstones).

The Rogn formation was not present in the primary target. In the secondary target, 118 metres with alternating layers of clay stone, siltstone and sandstone was encountered in the Melke formation, where about 40 metres was sandstone with moderate reservoir quality.

The well was drilled to a vertical depth of 1676 metres below the sea surface, and was terminated in the Not formation in the Middle Jurassic.

For more information see full press release from the Operator at the NPD webpage.

Pandion Energy AS (Pandion Energy) has entered into an agreement with ConocoPhillips Skandinavia AS (ConocoPhillips) to acquire a 20 percent interest in PL 891, containing the Slagugle prospect. The license is located in the prolific Haltenbanken area of the Norwegian Sea in blocks 6507/5, 6 and 8. Contingent on approval by the Norwegian Ministry of Petroleum and Energy, the operator will be making preparations to drill the Slagugle prospect in 2020, alternatively 2021.

CEO of Pandion Energy, Jan Christian Ellefsen, commented:

“With this farm-in we commit to our fourth exploration well in less than a year, demonstrating the importance of exploration and appraisal activities in Pandion Energy’s growth strategy. Once again we have identified and secured an attractive exploration opportunity close to existing fields and discoveries in the Norwegian Sea. Together with the upcoming wells in PL 842 (Godalen) and PL 263 D & E (Appolonia), we now have a portfolio of three exploration wells in this prolific part of the Norwegian continental shelf.”

PL 891 was awarded in the 2016 APA round and is operated by ConocoPhillips (100% before farm-down).

The transaction is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.

The Ministry of Petroleum and Energy has approved the plan for development and operation (PDO) for the Duva development (PL 636) on Tuesday 25 June. 

The Duva field will be developed with a four-slot subsea template, tied back to the Gjøa platform for processing and export. The field will have three production wells, two oil producers and one gas producer, with the potential for an additional oil well.

First production from the project is expected in early 2021 with around 30,000 bbls of oil equivalents per day at maximum production.

The Duva field is located 6 kilometres northeast of the Gjøa field (12 kilometres from the Gjøa platform). The discovery was made in production license 636 in August 2016.

Pandion Energy holds a 20% interest in PL 636. Other licensees in the Duva project include Neptune Energy Norge (30% operator), Idemitsu Petroleum Norge (30%) and Wellesley Petroleum (20%).

Further details available from the Ministry’s website (Norwegian only).

The Valhall Flank West topsides were installed on the Valhall field on Saturday, 22 June, just 14 months after the first steel was cut at Kværner’s yard in Verdal. Both the topsides and the jacket were delivered ahead of schedule, under budget and with no serious injuries. Pandion Energy holds a 10 percent interest in the Valhall field, where Aker BP is operator.  

The platform is the first to be delivered under the wellhead platform alliance between Aker BP, Aker Solutions, Kværner and ABB. It sailed from Kværner in Verdal on Sunday 16 June and arrived at the field with no carry-over-work from the yard, meaning a significant reduction in the work scope offshore.

Pandion Energy has since acquiring a 10 percent share of the Valhall and Hod fields in December 2017 worked closely together with the operator to further develop the area.

“This is an important milestone for the Valhall Flank West development. We are very impressed with the quality of the project and would like to congratulate Aker BP and the alliance on the delivered results so far,”says Jan Christian Ellefsen, CEO of Pandion Energy. 

Valhall has produced one billion barrels since the field opened in 1982. The ambition is to produce another billion barrels during the next 40 years. Valhall Flank West is an important contribution to ensure this ambition. The Flank West is estimated to contribute with around 60 million barrels of oil equivalents to Valhall’s production. The West Flank has capacity for another six wells, and the possibility of more wells are currently being looked into to increase value creation from the field.

The license is investing NOK 5.5 billion in Valhall Flank West. The break-even price for the development is USD 28.5 per bbl. Production start is expected in fourth quarter 2019.

For more information see press release by Aker BP

Pandion Energy AS (Pandion Energy) has entered into an agreement with Equinor Energy AS (Equinor) to acquire a 20 percent interest in licenses PL 263 D and PL 263 E, containing the Appolonia prospect. The licenses are located in the prolific Haltenbanken area of the Norwegian Sea in blocks 6407/1 and 6507/10, respectively. The operator is currently maturing the Appolonia prospect, which in case of a positive drill decision by the partnership may be added to the operator’s exploration drilling program for 2020.

CEO of Pandion Energy, Jan Christian Ellefsen, commented:

“Pandion is very pleased with this acquisition which represents our third exploration farm-in and the second in the Norwegian Sea. The Appolonia prospect is located in a very prolific area and makes up a valuable contribution to our growing portfolio of high quality exploration assets.”

PL 263 D was awarded in the 2017 APA round. PL 263 E is a new license to be carved out from PL 263, which was awarded in the 16^th licensing round in the year 2000. Both licenses are operated by Equinor (70% before farm-down) with Spirit Energy Norway AS (30%) as a partner.

The transaction is contingent on completion of the carve-out of PL 263 E from PL 263 and is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.

The Board of Directors of Pandion Energy has approved the Company’s annual report for 2018, including the audited financial statements for 2018.

“After a flying start in 2017, outperforming our own objectives, 2018 was the year we really established Pandion Energy as a full-cycle oil and gas company. During the year, we expanded our portfolio across all phases from exploration through to production on the Norwegian Continental Shelf and significantly strengthened our team. Besides, we completed our first round of debt financing, establishing a solid financial platform for future growth”, says Jan Christian Ellefsen, CEO of Pandion Energy.

In 2018, which was Pandion Energy’s first year with operating income, the Company recorded revenues of USD 101 million. The revenues relate to the Company’s 10 per cent interest in the Valhall & Hod fields, acquired from Aker BP in December 2017.

The Board considers Pandion Energy to be well positioned for further growth. The Company will continue its path to identify and invest in high quality assets in all phases.

The Board considers Pandion Energy to be well positioned for further growth. The Company will continue its path to identify and invest in high quality assets in all phases. By being an active license partner, Pandion will benefit from partnering with strong operators and contribute to maximising the value of the Company’s resource base.

The Company’s development projects are progressing according to plan. Valhall Flank West project (10 per cent) is expected to commence production in the fourth quarter of 2019, while the Duva development project (20 per cent), is currently expected to commence production in late 2020/early 2021.

Download/Link

• Pandion Energy 2018 Annual Report

The PL 636 license partners have earlier today submitted the development plan for the Duva project (formerly known as Cara discovery) in the Norwegian sector of the North Sea to the Ministry of Petroleum and Energy. Pandion holds a 20% interest in the Duva project.

The Duva field will be developed as subsea tie-back connecting to the nearby Gjøa platform. Duva’s recoverable reserves are estimated at 88 million barrels of oil equivalents and is expected to yield around 30 thousand barrels of oil equivalent per day at maximum production. First production from the project is expected in late 2020/early 2021.

Jan Christian Ellefsen, CEO of Pandion Energy, commented:

“The submission of the Duva PDO represents a significant milestone for Pandion Energy, as this was the first discovery in our portfolio following the prequalification of Pandion Energy as a licensee on the Norwegian continental shelf around two years ago. There has been material reserves uplift since Pandion acquired its 20% share in the project in 2017 with an increase in recoverable resources by more than 50%. The development of Duva field will significantly contribute to the production ramp-up for Pandion Energy in the coming years.”

The submission of the Duva PDO represents a significant milestone for Pandion Energy, as this was the first discovery in our portfolio following the prequalification of Pandion Energy as a licensee on the Norwegian continental shelf around two years ago. There has been material reserves uplift since Pandion acquired its 20% share in the project in 2017 with an increase in recoverable resources by more than 50%.

Developed with a four-slot subsea template, the Duva field will be tied back to the Gjøa platform for processing and export. The field will have three production wells, two oil producers and one gas producer, with the possibility of an additional oil producer.

The Duva field is located 6 kilometres northeast of the Gjøa field (12 kilometres from the Gjøa platform). The discovery was made in production license 636 in August 2016.

Other licensees in the Duva project include Neptune Energy Norge (30% licensee and operator of both the Duva project and the Gjoa platform), Idemitsu Petroleum Norge (30%), and Wellesley Petroleum (20%).

For more information see press release by Neptune Energy