Statoil, on behalf of the license holders, has submitted a Plan for Development and Operation of the Trestakk discovery, offshore Norway, to the Norwegian minister for petroleum and energy, Tord Lien.
Capital expenditures for the project are estimated at approximately $669 million (5.5 billion NOK), down from first investment estimates of around $1.21 billion (10 billion NOK). Project costs were previously reduced to $853 million (7 billion NOK) when the concept selection was made in January 2016.
The discovery, made in 1986, contains around 76 million barrels of recoverable oil equivalent, according to Statoil. The project will be tied back to the Åsgard A oil production vessel, with planned production start-up anticipated in 2019.
“Trestakk is a good example of what is possible to achieve through spending time on working toward the best concept selection,” said Torger Rød, head of project development in Statoil.
“By rethinking our concept along with license partners and suppliers, we have arrived at a solution that costs almost 50 percent less than the original concept. At the same time, we have been able to increase the recoverable resources significantly,” he added.
The reductions have been achieved through rethinking concept, simplifying and reducing scope in addition to capitalizing on recent efficiency improvement initiatives, said a Statoil statement released Tuesday.
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