DONG Reinforces Commitment to Faroes

DONG Reinforces Commitment to Faroes pp 78-79

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DONG Reinforces Commitment to Faroes pp 78-79A partner in the Sula Stelkur prospect which will be drilled this summer, DONG Energy increases its acreage on the Faroese Continental Shelf to become a major player on both sides of the Faroe-Shetland Basin.

Increasing its acreage in the Faroes by two licenses last year (2013), Denmark’s DONG Energy believes strongly that a commercial oil or gas find in the area is plausible in the near future. With interests in a total 31 licenses near the Faroe Islands and the West of Shetland area, DONG Energy’s oil and gas exploration and production unit DONG E&P has become a leading player in the region.

Together with OMV and operator Statoil, DONG E&P is a partner in the Sula Stelkur prospect, which will be spudded in the second half of this year. The company also holds an interest in the Marjun discovery of 2001, now the subject of renewed interest and revaluation based on cutting-edge technology.

In June 2013 the Faroe Islands’ Ministry of Trade and Industry awarded six blocks in two exploration licenses to DONG E&P under the ‘Open Door’ license round, with DONG as operator holding a 100-percent interest in both licenses. Adding to two further licenses already held in the Faroes, the company now has four exploration licenses on the Faroese Continental Shelf.

“The awarded blocks in the Faroes are located in an area where we have identified a number of attractive prospects close to production fields Foinaven and Schiehallion,” DONG E&P Senior Vice President Jan Terje Edvardsen noted. “We are looking forward to become more acquainted with the potential of this area through the aid of new 3D seismic data and special processing technologies.”

Minister’s visit: Since the First Licensing Round back in 2000, DONG E&P has actively participated in exploration in a number of licenses offshore the Faroes, including Marjun, the first find. “The latest licenses that we have been awarded are the result of our longterm exploration strategy with the Atlantic Margin playing an important role for future growth,” Mr. Edvardsen said. “Our persistence in this strategy has earned us a leading position in the region.”

Mr. Edvardsen added: “Together with the recent license award in the UK 27th Licence Round, the awards in the Faroes confirm our position as a major player in the Faroe Islands and in the UK West of Shetland area, and it also confirms that DONG E&P is the company with most license interests in this prospective region.”

Recognizing its prominent position in the Faroese exploration effort including this year’s drilling campaign on the Sulan Stelkur prospect, Faroese Minister of Trade and Industry Johan Dahl paid a visit to DONG Energy during a scheduled trip to Copenhagen in early 2014. As he met with DONG Energy CEO Henrik Poulsen and Mr. Edvardsen, the Minister discussed oil and gas exploration as well as the ongoing Power Hub project, a smart grid joint venture between DONG C&M and Faroese utility company SEV.