Statoil has agreed to acquire JX Nippon’s 45% equity share and ownership of the UK licence for the Utgard field, in the UK Continental Shelf (UKCS).
Following the transaction, the Norwegian operator will see its participation in UK licence P312 rise to 100%.
The Norwegian operator reportedly plans to invest up to £374.4 million in the development of the North Sea field. According to plans reported by the Norwegian press, a plant has already been put together to have four well slots on the field.
Statoil Ups UK North Sea Utgard Field Stake
On a first phase, two wells will be drilled with an option to drill a third well in the field, when it is deemed necessary.
The field is expected to raise Statoil’s resource base and strengthen its efforts to develop the Sleipner area until 2030.
A final investment decision (FID) is expected before the end of the year, with production start-up in 2020.
The company had previously acquired stakes from First Oil in October 2015 and Talisman Sinopec in December 2015. Statoil is the operator in NCS licence PL046 with a 62% stake.
Aker Solutions In Charge Of Preliminary Engineering
Utgard is a gas and condensate field covering the UK-Norway median line which is expected to be developed as a tie-back to existing infrastructure on the Norwegian Continental Shelf (NCS) for the Sleipner gas platform, also operated by Statoil.
According to Statoil, a development plan should be disclosed this summer and Aker Solutions has already been awarded a contract for preliminary engineering to tie the field to Sleipner.
The Utgard field is located in blocks 15/8 (NCS) and 16/18a (UKCS) in the central North Sea, approximately 21 kilometres (13 miles) west of the Sleipner complex. All the processing infrastructures are expected to be placed on the Norwegian side of the border, although one of the two well targets is on the UKCS.