Statoil reported Thursday that "unsustainable project economics" have forced it and its partners, Petoro and GDF Suez, to terminate the Kristin Gas Export Project.
The Kristin field is located on the southwestern part of the Halten Bank in the Norwegian Sea and contains recoverable reserves of approximately 1.5 trillion cubic feet of gas and 240 million barrels of condensate.
The Kristin Gas Export Project sought to connect a pipeline between the Kristin field and the new Polarled gas pipeline – a 300-mile pipeline between the Aasta Hansteen field in the Norwegian Sea and the Nyhamna gas processing facility in western Norway.
However, the partners have now decided to terminate the project due to increase costs and volume risk. Statoil emphasized that the Kristin Gas Export Project represented less than five percent of the Polarled volumes and that the termination will not influence the execution of the Polarled project.
"It is a necessary decision that has been taken by the KGEP partners. With the deteriorating project economics, we did not see grounds to continue the KGEP development," Håkon Ivarjord, Statoil's project development director for Polarled, said in a company statement.
However, Statoil insisted that the opportunity for a future connection of the Kristin field to the Polarled pipeline still exists.
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