Statoil Picks Subsea Plan For Norway Project After 30% Cost Cut

Reuters

OSLO, Jan 13 (Reuters) – Energy major Statoil and its partners have agreed on a development concept for their Trestakk oil and gas discovery off the coast of Norway after cutting the cost of the project by several hundred million dollars, the company said on Wednesday.

A final decision on whether or not to go ahead with the Norwegian Sea development will be taken during 2016, it added.

Statoil, ENI and Exxon Mobil have picked a subsea concept that will reduce the investment cost by 30 percent compared to their initial estimate from March 2015, Statoil said in a statement.

It did not reveal its cost estimate, but a Statoil spokesman said the savings amounted to several billion Norwegian crowns, corresponding to hundreds of millions of dollars.

One dollar currently costs 8.86 Norwegian crowns.

Development of Trestakk had previously been postponed to cut costs amid the crash in oil prices, which have forced energy firms to step up cash discipline and be cautious about investing in new projects.

The field, discovered in 1986, will be developed with five subsea wells which will be tied in to the nearby Aasgard field, Statoil said.

The oil ministry and the country's regulator have put pressure on Statoil to develop Trestakk, as the project is seen as time-critical due to its dependence of infrastructure in the area.

Recoverable resources for the field were estimated at 75 million barrels of oil equivalents. Production upstart could take place in 2019, Statoil said.

Operator Statoil holds a 59.1 percent stake in the project while Exxon Mobil has 33 percent and ENI 7.9 percent. ($1 = 8.8578 Norwegian crowns)

(Reporting by Stine Jacobsen, editing by Terje Solsvik)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Senior Accounting Analyst Job
Expertise: Accounting|Budget / Cost Control|Financial Analyst
Location: Denver, CO
 
Oil and Gas job opportunity for "Big 4" Trained Auditors
Expertise: Accounting
Location: Houston, TX
 
Project Accountant
Expertise: Accounting
Location: Nashville, TN
 
search for more jobs

Brent Crude Oil : $54.33/BBL 0.81%
Light Crude Oil : $51.5/BBL 1.29%
Natural Gas : $3.75/MMBtu 1.35%
Updated in last 24 hours