Statoil downgrades Svale estimates, delays development plan

Sept. 17, 2001
Statoil AS has downgraded estimated reserves of its Svale field in the Norwegian Sea to 50 million bbl from the previous 80 million, and will therefore postpone filing a plan of development and operation to the authorities.

By the OGJ Online Staff

HOUSTON, Sept. 17 -- Statoil AS has downgraded estimated reserves of its Svale field in the Norwegian Sea to 50 million bbl from the previous 80 million, and will therefore postpone filing a plan of development and operation to the authorities.

Previously, Statoil had said it would develop Svale, on production license 128, as a satellite to its nearby Norne floating production vessel (OGJ Online, Aug. 14, 2000). The reduced estimate means the development solution does not meet Statoil's return-on-capital requirements.

The test and analysis results from exploration well 6608/10-6 and appraisal well 6608/10-7 caused Statoil to scale down Svale's estimated oil reserves.

Statoil and its partners are considering tying back other prospects to make the project more profitable.