Statoil is set to move forward with more than half a billion dollar's worth of investment in the UK and Norwegian North Seas after getting the green light for its Utgard and Byrding projects.
The move comes just as the firm is considering yet another subsea tieback on its latest discovery at Cape Vulture in the Norwegian Sea.
The Utgard gas and condensate field, which cuts across the Norwegian and UK North Sea, will be a two-well subsea tieback (one well each side of the median line, with the template on the Norwegian side) to the Sleipner facilities, in Norway, costing about US$410 million (NOK 3.5 billion).
The Byrding oil and gas field will be a 7km-long duo-lateral well drilled from the existing Fram H-Nord subsea template, which exports to the Troll C facility, costing about $120 million (NOK 1 billion).
Utgard, discovered in 1983, 21km from Sleipner, contains about 56 MMboe. The gas in Utgard has a high CO2 content, and will benefit from carbon cleaning and storage facilities at Sleipner.
After processing the liquids will be exported to Kårstø and the dry gas to Gassled. The field is due on stream in 2019.
Byrding contains about 11 MMboe. The first 5km of the 7km-long duo-lateral well on Byrding will be shared by the two laterals. After processing oil will be piped from Troll C to Mongstad and the gas from Troll C via Troll A to Kollsnes in existing pipelines. The field is due onstream in Q3 2017.
“These projects will give valuable new volumes to the Sleipner and Troll field. Efficient utilization of existing infrastructure contributes to reducing the costs and make these developments profitable,” says Torger Rød, senior vice president for Project Development in Statoil.
The Utgard license ownership interests are: Statoil (operator - 38,44%), Statoil UK (38%), Lotos Exploration and Production (17,36%) and KUFPEC Norway (6,20%).
The Byrding license ownership interests are: Statoil (operator – 70%), Engie E&P Norway (15%) and Idemitsu Petroleum Norway (15%).
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