Statoil and its partners have submitted development plans for the Utgard gas and condensate discovery in the North Sea to Norwegian and UK authorities.
Recoverable reserves at the asset are estimated at 56.4 million barrels of oil equivalent, and capital expenditures for the project are forecasted to come to around $414 million (NOK 3.5 billion).
“I am very pleased that we now can realize a commercial development of Utgard. This clearly demonstrates the effects of the improvement work that has taken place in the oil and gas industry in recent years,” said Torger Rød, Statoil’s senior vice president for project development.
Utgard straddles the UK-Norway median line, the majority of the reserves being located on the Norwegian side. The Utgard development will include two wells in a standard subsea concept, with one drilling target on each side of the median line. With all installations and infrastructure being located in the Norwegian sector, the UK well will be drilled from the subsea template on the Norwegian continental shelf. The distance from the subsea template to the median line is 1,476 feet.
Gas and condensate will be piped through a new pipeline to the Sleipner field for processing and further transportation to the market. The Utgard wells are scheduled to come on stream at the end of 2019 and will produce approximately 7,000 sm3 per day of oil equivalent.
Discovered in 1982 Utgard (formerly Alfa Sentral) is located 13 miles from the Sleipner field. The discovery has been considered for development on several occasions in the past.
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