Statoil is planning to develop the 56.4 MMboe UK/Norwegian gas condensate Utgard discovery via a subsea development.
The US$410 million (NOK 3.5 billion) project will see two wells, one on each side of the median line between the UK and Norwegian North Seas, tied 21km back to the Sleipner field for processing and transport to market. First production is planned for the end of 2019, with plateau production expected at 7000cu m/d oil equivalent.
Utgard, discovered in 1982 and formerly known as Alfa Sentral, has been considered for development on several occasions in the past, but never made the cut. Statoil, which consolidated its holding in the field this June, by acquiring JX Nippon's 45% share in the UK portion field, says reuse of existing infrastructure was essential to bringing the field to development.
“I am very pleased that we now can realize a commercial development of Utgard. This clearly demonstrates the effects of the improvement work that has taken place in the oil and gas industry in recent years,” says Torger Rød, Statoil’s senior vice president for project development.
While the majority of the reserves are on the Norwegian side of the median line, Statoil has had to submit its plans to both the UK and Norwegian authorities for approval.
“Utgard provides new production which will be essential to further developing the Sleipner area, supporting the company’s ambitious targets for future activity and value creation,” Rød adds.
Statoil holds 100% equity in the UK share of Utgard and 62% in the Norwegian license containing the field.
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