Lundin Petroleum AB, a partner, said development will involve drilling of two production wells completed subsea and tied back to the floating production, storage, and offloading vessel on Alvheim oil field 28 km to the north. A water-injection well also will be drilled.
Boyla crude oil will be commingled with Alvheim oil and carried ashore in shuttle tankers.
Production is expected to start in 2014.
Water depth at Boyla is 120 m. Production will come from Paleocene Hermod sandstone at a depth of about 2,100 m, holding reserves estimated at 23 million boe. Lundin estimated total investment of the development at $867 million.
Boyla interests are Marathon, operator, 65%, ConocoPhillips Skandinavia 20%, and Lundin Norway AS 15%.