Skarv License Lays the Ground Work for Climate Friendly Technology

The Governement presented to the storting (parliament) a proposal on development, installation and operation for Skarv. The Skarv field will produce gas, oil and condensate. The field is situated north in the Norwegian Sea. The partners in the Skarv development is BP Norway AS (operator), StatoilHydro ASA, E.On. Ruhrgas Norway AS and PGNiG Norway AS.

The Proposal states that a condition for Parliament approval should be that the partners in Skarv is to implement a program, in cooperation with other relevant parties, to develop technology for transfer of large amounts of power to FPSOs. This technology will be important in reducing the greenhouse gas emissions from the Norwegian Continental Shelf.

"BP has decided to use power from shore on Valhall, and I have great expectations to BP as an active player in the further development of this technology," says Minister of Petroleum and Energy Aslaug Haga.

The Skarv offshore facilities comprise a geostationary turret-anchored FPSO with tandem oil offloading to a shuttle tanker and gas export through a new gas pipeline to Asgard Transport using a subsea arrangement of wells, templates and flowlines. Estimated capital expenditure is 31 billion Norwegian Kroner (NOK). Recoverable reserves are estimated to 48.3 billion cubic meters (bcm) wet gas and 16.8 bcm oil and condensate. Planned production start for Skarv is third quarter 2011.

Skarv will use the supply base in Sandnessjøen and the helicopter terminal in Brønnøysund.