StatoilHydro Trims Troll Devt Costs by $543MM

The partners in the Troll license have decided to adjust the plan for further development, installations and operation of the Troll field in the North Sea. The Troll partners wish to cancel the sub-project for the replacement of flowlines in the gas wells on the Troll A platform, which was one of three sub-projects in the submitted plan.

The plan was submitted to the authorities in June 2008 and is now pending final approval. The adjustments are necessary because of changes in framework conditions, such as lower oil prices and high costs. Replacement of the flowlines will be reconsidered at a later date.

Continued Increased Recovery

The gas injection system will be in place as planned by the turn of the year 2010/2011.

Gas injection makes it possible to increase recovery of the oil reserves, thereby ensuring sensible management of the overall resources.
Gas injection in Troll West will result in an increase in the oil reserves on Troll of 17 million barrels of oil.

Pipeline to Kollsnes

A new pipeline for rich gas from the Troll A platform to Kollsnes gas processing plant, including modifications to Troll A and the Kollsnes receiving facility, will proceed as planned. This will help to secure the Troll field’s position as a reliable, long-term source of supply for gas to Europe.

In all, the changes will mean a short-term reduction in the investment framework of NOK 3.8 billion. The original investment framework was almost NOK 10 billion.

"The goal of the plan is to increase the recovery of oil while at the same time maximizing the value of gas production. The field has been in continual development since it started up, and we are now making Troll more robust in order to meet the future on the basis of today's framework conditions," said Hege Marie Norheim, head of reserves and business development on the Norwegian continental shelf.

Troll Field

With its 115 subsea wells Troll is the world's largest subsea development.

The Troll field lies in the northern part of the North Sea, around 65 kilometers west of Kollsnes, near Bergen. The field comprises the main Troll East and Troll West structures in blocks 31/2, 31/3, 31/5 and 31/6.

Containing 60% of total gas reserves on the Norwegian continental shelf (NCS), it represents the very cornerstone of Norway's offshore gas production.

Troll is also one of the largest oil fields on the Norwegian continental shelf. In 2002 the oil production was more than 400,000 barrels per day.

StatoilHydro operates the Troll A, B and C platforms and the landfall pipelines, while Gassco is operator for the gas processing plant at Kollsnes on behalf of Gassled. StatoilHydro is technical service provider for Kollsnes operations.

The enormous gas reservoirs lying 1,400 meters below sea level are expected to produce for at least another 70 years.