ConocoPhillips submits $1.1 billion Norwegian oil development plan

The ConocoPhillips logo is displayed on a floor screen at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid/File Photo

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SANDEFJORD, Norway, May 9 (Reuters) – ConocoPhillips (COP.N) presented on Monday a plan to develop an oil discovery in the Norwegian North Sea for 10.5 billion Norwegian kroner ($1.10 billion), announced the American oil company.

Known as Eldfisk North, the development is part of the wider Ekofisk area, where hydrocarbons have been pumped for more than 50 years, and the operator said the new reserves are expected to come on stream in 2024.

The Eldfisk North reservoir contains mostly oil and gas and is expected to hold between 50 million and 90 million barrels of oil equivalent, ConocoPhillips said.

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During the COVID-19 pandemic, Norway introduced tax incentives for fields covered by development plans introduced by the end of 2022, as part of Norway’s attempt to extend the life of its oil and gas industry for decades. Read more

The plan is subject to the usual approvals from the Norwegian authorities.

“We will process the development plan as quickly as possible,” Norwegian Oil and Energy Minister Terje Aasland told reporters.

Ekofisk is operated by ConocoPhillips, which holds a 35.1% stake, while TotalEnergies (TTEF.PA) holds 39.9%, Vaar Energi (VAR.OL) 12.4%, Equinor (EQNR.OL) 7, 6% and Petoro 5%.

Norway is Western Europe’s largest oil and gas producer, pumping out around four million barrels of oil equivalent per day, but some of its major fields are at risk of running out over the next decade.

($1 = 9.5506 Norwegian kroner)

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Reporting by Nerijus Adomaitis and Nora Buli, editing by Terje Solsvik, Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

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