FAROE Petroleum has said it has encountered a potentially costly complication in its efforts to increase its production off Norway.
The Aberdeen-based company is reviewing options for development of fields in the Njord area with partners, following problems on a production facility they expected to use.
This could involve building a new production platform or vessel to use on any new fields they want to bring onstream in the area.
The Njord A platform was shut in by the operator Statoil to allow maintenance work to be completed.
The schedule for restarting production was put back from mid September to the second quarter of 2014. Faroe Petroleum said yesterday the deck structure is being reinforced.
It added that the Njord partnership is evaluating scenarios for the long-term further development of Njord and other deposits in the surrounding area.
These include bringing the Njord A facility to shore for further strengthening of the structure or replacing the hull, or potentially building a new platform or floating production vessel.
Announcing the Snilehorn discovery recently, Faroe said it might be tied into the Hyme field production facilities, which are linked to Njord A.
Will Arnstein, analyst at Finncap, said: "If either option is required, the additional cost to Faroe could be significant and delay future developments such as Snilehorn."
The partners may continue production with the Njord A facility after the deck is reinforced and find other ways of continuing development drilling in the area.
Faroe Petroleum's chief executive, Graham Stewart, said: "Given the very significant remaining value potential in Njord and the surrounding area, we continue to work closely with the operator in order to identify the best long-term plans for Njord."
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