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OKEA expects delays in first oil from Yme field

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Oilfield Technology,

OKEA ASA has announced that permitted production volumes for the Draugen field (44.56% working interest) for June and 2H20 have been reduced from a total of 3.63 million bbl to a total of 3.43 million bbl, as a result of the Norwegian Government's decision in April to implement production restriction measures for oil production for 2020.

The Gjøa field (12% WI) is exempted from the production limitations.

In order to re-optimise the operation and production at Draugen, bi-annual maintenance shutdown has been moved from September to late June. On this basis, OKEA maintains the production guidance for 2020 of 14 000 – 15 000 boe/d on average for the year. The revised shutdown schedule results in a postponement of an OKEA lifting which was previously planned for June to August which, due to revenue from sale of petroleum products being recognised in the financial statements at lifting, will increase the risk of a breach in bond covenants for 2Q20.

Implementation of Covid-19 related infection control measures and travel restrictions has resulted in significantly lower availability of personnel at the Aker Solutions yard in Egersund, Norway, where the Maersk Inspirer rig for the Yme project (15% WI) is undergoing an upgrade. Consent for using the rig on the Yme field was given by the Petroleum Safety Authority on 18 May. In case of prolonged restrictions, in addition to the inherent schedule risk of all large modification projects, OKEA expects first oil for Yme to be delayed to the first half of 2021.

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