SAINT-PETERSBURG STATE UNIVERSITY
Graduate School of Management
ESSAY
Development and operation of Ormen Lange natural gas field in Norway
Student: Ryzhko Anna
Professor: Olga L. Garanina, PhD
Class: International Oil and Gas markets
Saint-Petersburg
2014
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Contents
Introduction ..................................................................................................................................... 3
Part 1. Project description ................................................................................................................ 4
1.1. General information .......................................................................................................... 4
1.2. Field development ................................................................................................................. 4
1.3. Operators and licensees ........................................................................................................ 5
1.4. Reserves, investments and current status .............................................................................. 6
Part 2. Ormen Lange gas field's role in Norwegian and British supplies ....................................... 7
2.1. Norway .................................................................................................................................. 7
2.2. United Kingdom ................................................................................................................... 8
Part 3. Ormen Lange and Royal Dutch Shell .................................................................................. 9
Part 4. Ormen Lange: risks and uncertainties ................................................................................ 10
Conclusion ..................................................................................................................................... 12
Bibliography .................................................................................................................................. 14
Appendix ....................................................................................................................................... 16
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Introduction
Natural gas is one of the non-renewable energy sources in the world. It is used around the
for heating and electricity generation. The supplies of natural gas have increased from 1227 bcm
to 3479 bcm in the last 40 years (1973 - 2013). The main exporters are Russia, Qatar and
Norway and they offer 50% of all natural gas export (427 billion m 3 out of 850 billion m
3 ). Net
importers in 2013 are Japan, Germany and Italy. Natural gas takes the second place in energy
source mix in the world in terms of final consumption (15.2%) and its demand is forecast to
grow. In OECD countries the share of natural gas is even bigger in total final consumption,
almost 20% 1 .
From the statistics it can be seen that European demand for natural gas is quite big and
steady. The main productions of natural gas are located in Norway. Norway produced in 2013
approximately 107 bcm. The environment in natural gas industry in Norway is quite positive due
to good exploration results, years...