Statoil Looks to Extend Norne Field FPSO Operations

Published at 11:50AM - 14/01/15

Norwegian giant Statoil intends to extend the operational life of its Norne field to 2030. The oil and gas field came on stream in 1997 and was due to be closed last year, following production of c. 700 million b/oe.

The field has a recovery factor of 56pc currently, which is an excellent production result for subsea fields when measured against global competitors.

Production is flowing from 26 exploration wells and 15 sub-sea templates already drilled in Norne’s licence region. This includes five successful fields: Staer, Fossekall, Norne, Dompap and Svale. Statoil anticipates that the remaining area may have resources of up to 300 million b/oe yet to be drilled for.

The Marulk oil field operated by Eni and the Alve field are both tied to Norne’s floating unit for production, storage and offload (FPSO).

Kristin Westvik, the VP of Norne Operational, said that the vessel was in a healthy technical condition thanks to the systematic maintenance programme that Statoil had implemented over the past 17 years. She added that they had also focused on improving recovery and the phasing in of fresh discoveries to the vessel.

Statoil now aims to grow the recovery factor further to 60pc. Last year, testing determined the technical condition of the Norne FPSO’s hull.

Several tests were carried out in 2014 to identify the technical condition of the hull of the Norne FPSO. A project will be established in 2017 as a next step, with investment timings and details of the project’s scope to be determined. As part of the work, Statoil will also be applying for an extension to the working and technical life of the asset by 2021.

Operators across the world are focusing heavily on ways to derive greater value from existing assets in the face of the plummeting price of Brent Crude. With OPEC signalling its intent to allow prices to drop as low – or even lower – than $20 a barrel, marginal fields and project extensions are of key importance to oil and energy companies of all sizes, with the hope that new technology and operational efficiencies will allow further value to be squeezed from existing assets.

Last updated on 12:03PM - 17/01/15