OSLO Jan 15 Norway's Det norske oljeselskap ASA (DETNOR.OL) said on Thursday that the start-up of its Froy oilfield in the North Sea will likely be delayed to 2013 from 2012 as it seeks to cut costs of the project.
Det norske, whose partner in the field is the UK's Premier Oil (PMO.L), also said that Norway's oil ministry had granted a 10-year extension to the Froy licence to 2019.
"Det norske believes that the changed market conditions provide an opportunity to improve the Froy project economics by reducing development costs, and secure a larger resource base for the Froy field centre," Det norske said.
"The license partners in cooperation with the Froy project turn-key contractor have started a process with the aim of reducing development and operating costs," it said.
Costs accrued so far for work done by the project contractor amount to 17 million euros ($22.34 million), Det norske said.
Froy is a dormant field, which had been in production in 1995-2001 and which Det norske and Premier aim to reopen.
(Reporting by John Acher)