Statoil submitted development plans for two Norwegian Sea fields that are set to come onstream in 2020, with an investment of some US$2.3 billion (NOK 19.8 billion).
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The Bauge discovery will be tied in to the upgraded Njord field. Illustration from Statoil. |
The Norwegian giant submitted a revised $1.8 billion (NOK 15.7 billion) PDO for the Njord field to keep it onstream until 2040; and a $483,000 (NOK 4.1 billion) PDO for the new Bauge field. Both projects are set to come onstream in Q4 2020.
The Norwegian Petroleum Directorate (NPD) confirmed receiving the plans for development and operations (PDO) from Statoil, on behalf of its partnerships in each field.
The Njord oil and gas field is in Blocks 6407/7 and 6407/10, around 130km northwest of Kristiansund and 30km west of the Draugen field. It has been developed with a floating steel platform, Njord A, which has an integrated deck with drilling and processing facilities, as well as living quarters.
During the first phase of the field’s lifetime, oil was recovered using 11 production wells, while four injection wells sent the gas back down into the reservoir, to provide pressure support.
“When we submitted the plan for development and operation for the Njord development 20 years ago we assumed that the field would be shut down in 2013. With new technology, project improvements and close cooperation with the partners and supply industry, we now see opportunities to create considerable value for another 20 years at Njord,” says Margareth Øvrum, Statoil executive vice president for Technology, Projects and Drilling.
In the revised PDO, Njord A and Bravo will be upgraded to recover the remaining resources on the Njord, Hyme, and Bauge fields.
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Production on Njord was halted in 2016 and the facilities were brought to shore for upgrades after cracks were discovered in the structure. Image from Statoil. |
Statoil is planning 10 new production wells on the field, and says that the remaining resources on the Njord and Hyme fields total 175 MMboe. This corresponds to the reserves produced on the Njord field since first oil in 1997.
Statoil says that the work performed on the Njord A platform at Kværner Stord will facilitate the tie-back of Bauge, as well as potential third-party tie-ins.
Bauge is about 16km northeast of Njord A. Its development concept includes one subsea template, two oil producers and one water injector. The Bauge resources, estimated at 73 MMboe, will be phased in to the Njord A platform. This alone helps increase the life of the Njord field by three years, says Statoil.
According to the NPD, two production wells and one injection well will be drilled at Bauge.
The Bauge development will be the first user of the Cap-X technology, which is a next-generation subsea production system.
“Cap-X costs less to produce and install. This helps add more value from the Bauge field,” says Øvrum.
Provisions will also be made so that VNG Norge’s Pil discovery in production license 586, south of Njord, that can be tied in to Njord A, says the NPD.
"These are two important projects in the development of resources in the Norwegian Sea," says Kalmar Ildstad, assistant director for development and operation in the NPD. "We are interested in ensuring investments to extend field lifetimes. This will allow both recovery and value creation to increase, while also opening up opportunities for developing other discoveries in the area."
Production started on Njord in 1997. Original recoverable resources were 31.8 MMcm (200 MMbbl), 23.4 Bcm of gas, and 6.4 million tonne of NGL. Estimated remaining reserves are 6.2 MMcm (39 MMbbl), 16.3 Bcm of gas, and 4.1 million tonne of NGL.
Last year, Njord shut down production and the platform was towed to the Aker Stord shipyard, while the Njord B storage ship was taken to Kristiansund for repairs and upgrades.
Bauge was proven in 2013 (well 6407/8-6). Recoverable resources are estimated at 7.9 MMcm (50 MMbbl), 1.9 Bcm of gas, and 1 million tonne of NGL.
Statoil is the operator of Njord with 20% interest. Partners Engie E&P Norge holds 40% (20%*), DEA Norge 30% (50%*), Faroe Petroleum 7.5% and VNG Norge (2.5%*).
Statoil is also the operator of Bauge with 35% stake. Partners ENGIE E&P Norge holds 20% (10%*), Point Resources 17.5%, DEA Norge 17.5% (27.5%*), Faroe Petroleum Norge 7.5%, and VNG Norge 2.5%.
The ownership interests of each field will be changed in accordance with the percentage in brackets, given government approval.
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