Statoil approved for Trestakk

Statoil has gained approval from Norwegian authorities to develop the Trestakk discovery in the Norwegian Sea.

Illustration of Trestakk. From Statoil.

Trestakk’s development plan is now expected to cost US$640 million (NOK 5.5 billion), marking nearly a 50% decrease from original project cost estimates.

Trestakk, discovered in 1986, is on the Halten Bank in the Norwegian Sea about 20km south of the Åsgard field at 300m water depth. Its reservoir is at a depth of around 3900m.

Expected recoverable volumes at Trestakk are 76 MMboe, mainly oil. Tied into the Åsgard A production vessel, Trestakk is expected to come on stream in 2019.

Statoil submitted the PDO to the minister of petroleum and energy on 1 November 2016, on behalf of the license owners.

“This is a good example of what we are able to achieve in collaboration with our license partners and suppliers by innovative thinking, and spending enough time on maturing the best concept choice. Trestakk is an important contribution in maintaining activities on the Norwegian continental shelf,” says Torger Rød, head of project development in Statoil.

The first estimates for developing Trestakk were around NOK 10 billion. At the time of concept choice in January 2016, the costs had been reduced to NOK 7 billion. Based on further improvements and concept adjustments up till investment decision, the costs were reduced to NOK 5.5 billion. Furthermore, Statoil and its partners expect to recover much more oil than originally anticipated.

The field development comprises of a subsea template and a tied-in satellite well. Three production wells and two gas injection wells will be drilled.

“The Trestakk volumes are an important contributor in maintaining profitable operation of the Åsgard A vessel up to 2030. It also enables us to extract more of the original Åsgard field volumes,” says Siri Espedal Kindem, head of the operations north cluster in Statoil.

Cost reductions have been achieved by a novel approach to concept choice, simplification and optimized scope, in addition to benefitting from ongoing efficiency measures.

“This shows what the industry has achieved in just a few years. The Norwegian supplier industry has demonstrated its ability to help find high quality and cost-efficient solutions that enable us to realize projects like Trestakk, even in a low oil price environment,” says Rød.

Statoil is the operator of Trestakk with 59.1% stake. Partners are ExxonMobil E&P Norway (33%), and Eni Norge (7.9 %).