STATOIL, the Norwegian state oil company that took over Aran Energy in November, 1995, has started its drilling programme off the Galway coast. If sufficient oil and gas reserves are discovered, the company said, production would probably be up and running by autumn, 1998.
The company owns 100 per cent of the operating rights to the 14 square kilometre Connemara Field in block 26/28, located some 165 kilometres due west of Galway. The site was first discovered by BP in 1979, and two wells on it previously tested for oil.
"These tests were not run long enough to be conclusive on revenue performance, quality and productability," Statoil said yesterday.
The field had been considered non commercial for many years, but the advent of more cost effective field development solutions and technology, as well as more favourable Irish tax laws, had led to Statoil's programme, the firm added.
"The JW McLean, a semi submersible drilling rig, arrived in Irish waters within the past few days and is currently in position, Statoil said.
Statoil plans to drill a first well and conduct an Extended Well Test while simultaneously drilling a second well. This process should be completed by August or September, when the company will make a decision on whether to proceed to field development.
The firm warned last night that there was a wide range of possible outcomes to the testing, cautioning against over confidence.
"To realise the optimal economic development of this marginal field the current appraisal is based on a fast track development with the potential for full production around mid 1998," a spokeswoman said. Statoil also holds a significant portfolio outside the Connemara Field, in the Porcupine, and in the Erris Slyne Troughs.
. Norway's Saga Petroleum said yesterday that it and the French oil giant, Total, had jointly submitted an application for drilling rights in the Irish Rockall Trough.
"The French company is already an operator off Ireland. We feel a joint application puts us in a stronger position when the Irish authorities award operatorships and licences in the first week of June," a spokesman for Saga said.
