Statoil Cuts Costs and Ups Resources on Trestakk

Published at 08:53AM - 01/11/16

Statoil has submitted a development and operations plan for the Trestakk discovery, with a “significant increase” of its recoverable resources.

The development is now expected to cost approximately 5.5 billion NOK (£545.16 million), a 4.5 billion NOK (£446 million) reduction from the original capital expenditure estimate.

“By rethinking our concept along with licence partners and suppliers, we have arrived at a solution that costs almost 50% less than the original concept,” Statoil head of project development, Torger Rød, said.

Statoil Cuts Costs and Ups Resources on Trestakk

“At the same time, we have been able to increase the recoverable resources significantly,” Rød added.

The first investment estimate was at around 10 billion NOK, which was then reduced to 7 billion NOK with the concept selection in January 2016.

Statoil Cuts Costs and Raises Resources on Trestakk Development
The field will be tied back to Åsgard A.

With the additional improvements and concept adaptations made this year, the estimate was further reduced to 5.5 billion NOK, the company explained.

The cost reductions have been achieved through rethinking concept, simplifying and reducing scope as well as capitalising on recent efficiency improvement initiatives.

“Trestakk is a good example of what is possible to achieve through spending time on working toward the best concept selection” Rød said.

Trestakk to be Tied Back to Åsgard A

The concept selection consists of a template structure and an attached satellite well, which will be tied back to Åsgard A.

A total of five wells will be drilled – three production wells and two gas injection wells.

“Volumes from Trestakk are an important contributor to ensure that operations on the Åsgard A production ship are extended towards 2030 and that more of the original volumes from the Åsgard field can be extracted,” senior VP for operations North in Statoil, Siri Espedal Kindem, said.

The discovery  will be tied back to the Åsgard A oil production vessel, with planned production start-up in 2019.

The field is located in the Norwegian Sea, approximately 16.7 miles southeast of Åsgard A and is operated by Statoil (59.1%) with Eni Norway (7.9%) and ExxonMobil (33%).

Statoil Cuts Costs and Raises Resources on Trestakk
Åsgard A production operations will be extended towards 2030