Statoil Gets Consent For Gullfaks South Production

Published at 05:13PM - 13/06/16

The Norwegian Petroleum Directorate (NPD) has authorised Statoil to start up operations and production at its Rutil deposit on Gullfaks South, in the Norwegian sector of the North Sea.

Rutil will be developed with a standard subsea template with four well slots with two gas production wells, NPD said in a statement. The subsea template is tied-in to the existing infrastructure on the Gullfaks A facility for processing and export.

“The NPD is very pleased with the development of the Rutil project, which is expected to finish in less time and at a lower cost than originally planned,” said Tomas Mørch, assistant director of development and operations in the northern North Sea.

Statoil Gets Consent For Gullfaks South Production

The development and operation plan for Rutil, which Statoil had submitted in December 2014 turned out to be less expensive than initially expected, with investment costs now under 3.8 billion NOK (£324.42 million), while the initial estimate was 4.863 billion NOK (£415.18 million), according to NPD.

The production date has also been changed and production is now scheduled to start in August or September this year, several months before the originally planned date, in December 2016.

Rutil To Provide Nearly 80 MBOE

At the time of the submission of the plan, Statoil estimated volumes in place to be around 17.9 billion cubic metres of gas and 2 million cubic metres of condensate, with expected recoverable reserves of 11.9 million standard oil equivalents.

The development of the gas-filled structure located on Gullfaks South aims to extend the lifetime of the Gullfaks A platform, providing nearly 80 million barrels of oil equivalent.

According to a statement by senior vice president in Development and Production Norway Kjetil Hove, production from the Gullfaks Rimfaks region will help secure jobs from the Gullfaks field beyond 2030.