The Rising Influence of Rising Affluence

[DewDiligence]

Shell Discovers Massive Gas Field in Norwegian Sea

[Just in time for the new CEO, who takes over on July 1. Shell has a 50% working interest in the field.]

http://online.wsj.com/article/SB124562040908235299.html

›JUNE 22, 2009
By ELIZABETH ADAMS and BENOîT FAUCON

LONDON -- Royal Dutch Shell PLC said Friday that it made a natural-gas discovery in the Norwegian Sea that Norway's Petroleum Directorate noted could be the country's biggest find since the giant field Ormen Lange was found in 1997.

…The gas discovery, called Gro, is estimated to hold 10 billion to 100 billion cubic meters of recoverable gas, the country's Petroleum Directorate said, adding that the find is located in the deepest water of any Norwegian discovery to date.

In comparison, Ormen Lange holds nearly 400 billion cubic meters of gas reserves. The Gro discovery, if found to contain volumes toward the upper end of the wide estimate, would be about the same size as the Kvitebjoern field, with 74.9 billion cubic meters, or Oseberg, which holds 109.2 billion cubic meters, according to the NPD.

Gro is located about 90 miles northwest of the Victoria gas discovery in the northern Norwegian Sea, and 220 miles offshore.

"We're pleased with the discovery. We consider it positive for this area of the Norwegian continental shelf. It could have significant potential," said Shell spokesman David Williams, adding it is too early to say what the export options might be.

NPD exploration manager Sissel Eriksen said the gas find is "very interesting, and could be the largest since Ormen Lange if the upside figure is taken."

The discovery proves that Norway has a model that is working, Ms. Eriksen said. She added the area around Gro remains largely unexplored. "We're pushing the limit westward," Ms. Eriksen said.

The Anglo-Dutch company owns 50% of Gro, while StatoilHydro ASA owns 40% and GDF Suez SA owns 10%.‹