Shell pushed by Norway regulator on Ormen Lange gas project

|By:, SA News Editor

Norway's oil regulator says it wants Royal Dutch Shell (RDS.A, RDS.B) to move forward with a shelved project to boost recovery of natural gas at the Ormen Lange field and warns it will start pushing the company for progress from next year.

Norway wants a decision on an offshore compression project, which was postponed in 2014, as it will start to be “urgent” to proceed with the project during 2017 and 2018; production at the Norwegian Sea field, which supplies ~20% of the U.K.’s gas consumption, has been falling as the pressure in the reservoir drops.

Shell is expanding its terminal at Nyhamna to allow it to process gas from other fields and is installing two onshore compressors to boost recovery from Ormen Lange; it has said previously that a concept decision could be made in 2017, but for now, it is "still too early to conclude if a major project to increase recovery beyond onshore compression will materialize."