StatoilHydro Extends Statfjord Field's Productive Life beyond 2020
The Statfjord late life project has prolonged this North Sea field's productive life beyond expectations.
"We are highly satisfied with every single year we can add to the Statfjord field's productive life," said Stale Tungesvik, senior vice president for the operations west cluster in the Exploration & Production Norway business area.
"During the late life project we have extended the production period at the Statfjord field beyond 2020. The planned field production period has been prolonged by 12 years, which is two years more than we expected when we submitted the plans for the Statfjord late life project."
The work on extending the field's productive life is carried out while the platforms are in operation.
"In order to succeed in this type of projects it is important to find a balance between optimising the day-to-day production while at the same time executing projects and making investments that will give optimal use of resources in the long term," said Mr. Tungesvik.
The flexibility between the Statfjord late life project and the operation of the platforms has made it possible to utilise the upsides and prolong Statfjord's field life.
"The overall value creation of the Statfjord late life project is estimated at around NOK 60 billion," said Mr. Tungesvik. "This is a sixfold value increase since the project plan was submitted to the authorities in 2004. The cash flow from Statfjord in 2008 was sufficient to cover the entire late life investment, also including the Tampen Link pipeline."
Completed in 2007, the pipeline connects the Statfjord gas to the British market.
StatoilHydro and the partners have now decided to invest in eight new electrical submersible pumps on the Statfjord C platform.
StatoilHydro and the partners are also evaluating to invest in additional four pumps for the Statfjord B platform.
The total investment for the submersible pumps on Statfjord B and C is in the range of NOK 3.5 billion, and is subject to approval by the partners.
The pumps will be used for pumping water out of the reservoir, thus lowering the reservoir pressure and releasing more gas for production. The pumps will be installed in the wells at depths as low as 4,500 meters.
The total investment in the Statfjord late life project is estimated at around NOK 23 billion, including the Tampen Link pipeline and the submersible pumps for Statfjord B and C. The investment estimate of the original development plan was NOK 15 billion.
"So far, the Statfjord field has generated a gross income of as much as NOK 1,200 billion," said Mr. Tungesvik. "The Statfjord late life project is forming the basis for the Statfjord field to generate great value for StatoilHydro, the partners and society for many years to come."
Partners: StatoilHydro (operator) (44.33688%), ExxonMobil (21.36717%), ConocoPhillips (10.32747%), ConocoPhillips UK (4.84377%), Norske Shell (8.54687%), Enterprise (0.89030%) and Centrica (9.68754%)
Operates 13 Offshore Rigs
- ExxonMobil May Add Gulf Coast Polypropylene Capacity (Mar 20)
- Traders: ExxonMobil Buys LNG To Chill Quake-Hit Papua New Guinea Project (Mar 19)
- Oil, Gas Leaders Warn Trump He Risks Harming Their Industry (Mar 16)
Company: Shell more info
Operates 31 Offshore Rigs
- Oil's Heavy Hitters Line Up to Dive Into Mexico's Deep Waters (Jan 26)
- UK Firm Intertek Says Employee Involved in Shell Oil Theft Case (Jan 17)
- Shell Looks Beyond Road Fuels to Secure Future of Refining (Nov 06)
Company: ConocoPhillips more info
Operates 12 Offshore Rigs
- Shale Producers Urge FERC To Deny White Cliffs Oil Pipeline's Fee Request (Feb 23)
- Why Canada Is The Next Frontier For Shale Oil (Jan 29)
- Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)
Company: Centrica PLC more info
- Sharp Fall In Applications For Norway's Arctic Oil Permits (Dec 05)
- Drilling of Well at Fogelberg Gas Discovery to Start in Feb/March -Centrica (Sep 01)
- Centrica Merges Oil Business with Bayerngas to Tap Younger Fields (Jul 17)
Company: StatoilHydro more info
Operates 33 Offshore Rigs
- Samsung Heavy Industries Lands Statoil FSU Construction Contract (Sep 14)
- First Movers in Eco-Drilling: Going 'Dope'-less (Apr 25)
- StatoilHydro Delays Hammerfest LNG Start Up (Nov 23)