North Sea Oil Find Nears Commercial Development

Published at 12:42PM - 09/08/16

The North Sea gas condensate discovery Utgard is closer to the start of commercial development.

This follows Statoil’s announcement that it has submitted the Plan for Development and Operation (PDO) and the Field Development Plan (FDP) for the Utgard gas and condensate discovery to Norwegian and UK authorities, together with its partners in the project.

“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,” Statoil’s Senior Vice President for Project Development, Torger Rød, said.

North Sea Oil Find Nears Commercial Development

Utgard, discovered in 1982 and is located 13 miles from the Sleipner field, is located in the UK-Norway median line, although most of the reserves are located on the Norwegian side.

The development will include two wells in a standard subsea concept, with one drilling target on each side of the median line.

However, all installations and infrastructure will be located in the Norwegian sector and the UK well will be drilled from the subsea template on the Norwegian Continental Shelf.

North Sea Oil Find Nears Commercial Development
Statoil’s Head of Procurement Atle Reinseth and  Petroleum and Energy Tord Lien with the Utgard Development Plan

Gas and condensate will be piped through a new pipeline to the Sleipner field for processing and transportation to the market.

As the gas from Utgard has a high CO2 content, it will benefit from carbon cleaning and storage at Sleipner, using existing infrastructure.

Utgard to Come On Stream in 2019

The wells are scheduled to come on stream at the end of 2019 and produce approximately 8,729 square cubic feet per day of oil equivalent.

Recoverable reserves in Utgard are estimated to be at approximately 56.4 million barrels of oil equivalent, with capital expenditures projected at about NOK 3.5 billion (£318.84 million), the Norwegian major informed in a statement.

“Utgard is the first Statoil development in many years producing resources across the median line, and we are pleased to have found good solutions that address considerations for good resource management on both sides,” Rød added.

“Good and efficient cooperation across the board, both in relation to partners and government authorities, has made this development possible,” he stated further.