Statoil to Extend Production Life of Glitne

The producing life of Statoil's Glitne development in the North Sea will be extended by up to 18 months after the licensees have decided to drill a new production well.

This means that output could continue through the first half of 2005, reports field manager Svein Loining.

Statoil is thereby extending its contract with PGS Production to use the Petrojarl I production and storage vessel on Glitne.

Recoverable reserves will be increased by 40 percent, allowing the licensees to produce a total of 35 million barrels of oil. The original estimate was 25 million. Petrojarl I Mr. Loining confirms that the drilling contract has gone to the new Maersk Innovator rig owned by Maersk Contractors, with work likely to begin during June. The new well is estimated to cost approximately NOK 300 million, including drilling and completion, fabrication and installation of flowline and riser, and modifications to and pull-in of risers on Petrojarl I.

Stolt Offshore and Subsea 7 have won a joint contract for engineering, fabrication and installation of the flowline and umbilical. Work will start at once, with installation in August.

"Expectations about recovery and good economics were present when the development decision for this field was originally taken," Mr. Loining notes.

"However, production has proved better than expected. Combined with a good oil price, that meant good earnings for Glitne in 2002." Production is on a par with Statoil's share of output from the Heidrun field in the Norwegian Sea.

Located in the Sleipner area, Glitne accordingly makes a good contribution to the Exploration & Production Norway business area.

Statoil has 58.9 percent of the field, with TotalFinaElf (21.8 percent), Det Norske Oljeselskap (10 percent) and Dansk Olie- og Naturgas Norge (9.3 percent) as its partners.