Svale Development Postponed

The Svale field contains less recoverable oil than previously estimated. The test and analysis results from exploration well 6608/10-6 and appraisal well 6608/10-7 have caused Statoil to scale down Svale's estimated oil reserves. Recoverable reserves in the field have been reduced from an estimated 80 million to 50 million barrels of oil. This scaling-down means that the proposed development solution does not meet Statoil's requirements to return on capital. The partners in production licence 128 will therefore not submit a PDO in November as intended.

Plans called for a development of Svale as a satellite tied back to the production ship on the Statoil-operated Norne Field. The partners are now considering possibilities for tying back other prospects in order to make the project more profitable.

The Svale structure was proven in May 2000.