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)