Eni Approved for Goliat Development, First Oil Field in Barents Sea

The Norwegian government today granted approval of the development concept for Eni's Goliat oil field in the Barents Sea, reports Reuters. Expected to require an investment of $4.34 billion, Goliat is the first oil field to be developed in the arctic waters of the Barents Sea.

"Goliat is the first oil field in the Barents Sea that will be developed," said Oil Minister Terje Riis-Johansen. "Goliat is the biggest industrial project to ever be undertaken in northern Norway."

Located on Production Licenses 229 and 229B in waters measuring 1,312 feet (400 meters) deep, the Goliat field is situated off Norway's northern tip about 53 miles (85 kilometers) northwest of Hammerfest. Eni serves as the operator of Goliat with 65% interest. StatoilHydro holds the remaining 35%.

With estimated reserves of 174 MMbo, the Goliat development plan calls for subsea wells tied to an FPSO. Harsh conditions call for a unique FPSO concept, and project partners selected Sevan Marine's FPSO 1000 cylindrical design for the development. Production is expected to reach 100,000 bopd, plus gas. Lowering CO2 emissions from the development, electricity will come from shore and a gas turbine will be installed on the FPSO.

The PDO will now be submitted to the Norwegian Parliament, which will make the final decision on the on the development.

With a life expectancy of up to 15 years, Goliat is scheduled to begin production by 2013.

StatoilHydro's Snohvit was the first development in the Barents Sea. Coming on stream in 2007, Snohvit is a gas field located 31 miles (50 kilometers) northwest of Goliat.