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Regulator sees Norway oil field shutdown costs at $4.2 bln during 2017-2021
June 15, 2017 / 9:48 AM / 5 months ago

Regulator sees Norway oil field shutdown costs at $4.2 bln during 2017-2021

OSLO, June 15 (Reuters) - The Norwegian Petroleum Directorate said on Thursday:

* Expects 10 to 20 fields on the Norwegian continental shelf to cease production by 2021 out of 80 producing fields at the beginning of 2017

* Expects oil companies to spend 23.4 billion Norwegian crowns ($2.76 billion) on decommissioning of oil and gas fields and 12 billion crowns on physical removal of installations on the Norwegian continental shelf during 2017-2021

* Expects 40-50 wells will need to be plugged and abandoned (P&A) per year in coming years, with P&A costs varying from 50 million crowns to several hundred million crowns

* Says fields that were closed after 2011 or are expected to be closed by 2021 account for less than 2 percent of production during that period

* Says oil companies spent 32.5 billion crowns on decommissioning and 8.5 billion crowns on installation removal on the NCS during the last five years ($1 = 8.4699 Norwegian crowns) (Reporting by Nerijus Adomaitis, editing by Terje Solsvik)

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