Shell to start feeling Norway heat on Ormen lange gas project

Shell to start feeling Norway heat on Ormen lange gas project

Norway expects Royal Dutch Shell Plc to go forward with a shelved project to boost recovery of natural gas at the Ormen lange field, and warned it'll begin pushing the company for progress from next year.

“A clear message to Shell is that we expect that it seizes the opportunities that exist at Ormen lange and involves a call to take this forward,” Bente Nyland, the head of the Norwegian oil directorate, said in an interview in oslo on wednesday. “There are plenty of resources at Ormen and that we have to get them out.”

Norway wants a call on a so-called offshore compression project, that was postponed in 2014 as one of the primary victims of an industry-wide drive to cut payment and prices. it'll begin to be “urgent” to proceed with the project during 2017 and 2018, Nyland said. Production at the norwegian sea field, that provides regarding 200th of the UK’s gas consumption, has been falling because the pressure within the reservoir drops, in step with the NPD.

As oil and gas companies operating in norway are preparing for a third year of investment cuts, authorities have warned them to not scrap viable projects or place time-critical resources in danger that would be lost as a result of infrastructure disappears or geological conditions change.

Nyland has previously said Norway doesn’t wish companies that “skim the cream.”