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ENI Delays First Oil from Arctic Goliat Field to Early 2016

Date: 2015-12-23
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ENI Delays First Oil from Arctic Goliat Field to Early 2016
The company said in September it expected oil production to start by the end of this year after several delays in developing the field.

 

 

 

OSLO, Dec 22 (Reuters) - Italian oil company ENI now expects first production from its Goliat field offshore northern Norway at the beginning of 2016, later than previously expected, the company said on Tuesday.

Due to become the world's most northerly producing oilfield, output from the field is due to peak at some 34 million barrels of oil per year.

"We are coming close to production start-up and foresee readiness for first oil in the first weeks of 2016," the company told Reuters in an email.

The company said in September it expected oil production to start by the end of this year after several delays in developing the field.

ENI said it has completed installation of subsea facilities and connected wells to the floating platform, but still had to complete testing of electronic systems.

"We are in close cooperation with authorities in order to obtain relevant permits," the company said.

ENI and its partner Statoil still have to present the final documentation to the Norway's Petroleum Safety Authority for its consent.

"We have made clear to ENI that we will not be able to issue the consent until we are confident that all activites can be performed in compliance with the safety rules," said Eileen O'Connell Brundtland, a spokeswoman for the Authority.

Even when consent is granted it could take up to five weeks to start production at Goliat due to the time given for the appeal process, she added.

The cost of Goliat has so far surged to 46.7 billion crowns ($5.47 billion) from an original estimate of around 30 billion seen in 2009, when the development plan was approved by the authorities.

ENI has a 65-percent stake in the field, where it is operator, with Statoil holding the remaining 35 percent. (Editing by Greg Mahlich)

 

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