VNG Norge has moved forward with its Pil & Bue project development, located in license PL586 in the Norwegian Sea, as it started the project’s FEED-studies with plans to pass the FID by the end of the year.
The partners in the VNG-operated PL 586 license are Spike Exploration, Faroe Petroleum, and Pure E&P Norway with 35%, 25%, and 15% interests, respectively.
VNG said on Friday that the partnership has passed the second decision gate for the Pil & Bue project. This milestone is the formal decision of continuation of the project.
According to the company, the project has initiated FEED-studies (Front End Engineering and Design) and the plan is to pass the final investment decision (FID) by the end of the year.
The partnership decided on the preferred development solution for the Pil & Bue discoveries in November last year. The selected concept for the field development is a subsea tie-back to the Njord platform.
The Njord production platform is currently at Kvaerner’s Stord facility in Norway undergoing extensive modifications in order to accommodate a number of new satellite field tie-back developments, including Pil & Bue.
Atle Sonesen , Managing Director of operator VNG Norge, said: “The decision demonstrates the ability to move the Pil & Bue project ahead. We look forward to maturing the project further towards the final investment decision and submitting the PDO by the end of the year.”