Marathon and Partners Announce First Oil From Vilje Field Offshore Norway

abarrelfull wrote on 04 Jun 2012 09:34
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Friday, August 1, 2008

Marathon Oil Corporation (NYSE: MRO) and its partners announced today that production has begun at the partner operated Vilje development offshore Norway, through a subsea tie-back to the Marathon operated Alvheim floating production, storage and offloading (FPSO) vessel.
Vilje is being developed with two production wells in block 25/4 on the Norwegian Continental Shelf, and will be a significant contributor to the Alvheim FPSO reaching its maximum production capacity.

"We are delighted to have the Vilje development onstream, providing another stage in the Company's defined production growth," said Kristin Farovik, managing director, Marathon Petroleum Company (Norway), a wholly owned subsidiary of Marathon. "The combined Alvheim/Vilje development is expected to reach a rate of 75,000 net (120,000 gross) barrels of oil equivalent per day by the first quarter 2009. We are currently developing the nearby Marathon operated Volund discovery and expect to tie this into the Alvheim FPSO during 2009, as capacity becomes available. In addition, we have several exploration prospects in the area with the potential to sustain a longer peak production for the Alvheim FPSO."

Marathon holds a 46.9 percent interest in Vilje, along with StatoilHydro Petroleum AS (operator) which holds a 28.9 percent interest, and TOTAL E&P Norge AS which holds a 24.2 percent interest.

Marathon holds a 65 percent operated interest in Alvheim field, and associated FPSO, which began operations in June and has already shown strong production performance. The Alvheim FPSO has a nameplate capacity of 120,000 barrels per day of oil and 125 million cubic feet per day of natural gas with total storage capacity of 560,000 barrels of oil. Throughput capacity is expected to reach as much as 134,000 barrels per day. Located about 140 miles (224 kilometers) from Stavanger, Norway, the Alvheim development includes subsea infrastructure consisting of four drill centers and associated flow lines. The development provides for the transportation of produced oil by shuttle tanker, and transportation of produced natural gas to the existing U.K. SAGE system using a new 14-inch, 24-mile cross border pipeline. The Alvheim purpose-designed FPSO vessel takes advantage of the latest technology for low emission gas turbines — a first for the Norwegian Continental Shelf.

Marathon has a 65 percent interest in Volund and serves as operator, while Lundin Norway AS holds the remaining 35 percent interest.

• Marathon and Partners Announce First Oil From Vilje Field Offshore Norway

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