By OGJ editors
HOUSTON, July 14 -- Statoil ASA has given a letter of intent to Stavanger-based offshore drilling contractor Smedvig Offshore ASA for a 12-month drilling assignment on Kristin field in the Norwegian Sea. The job is valued at 350 million kroner.
Subject to approval by Kristin licensees, Smedvig will use its West Alpha drilling rig to drill four wells, starting in December. Statoil has an option to extend the contract by up to four additional 3-month periods if needed, a company spokesperson said.
Statoil contracted last year with Saipem SPA to drill on Kristin this summer using the Scarabeo 5 semi-submersible drilling rig—which earlier had been modified for deep water (OGJ July 30, 2000, p. 34). Saipem is due to spud the first well on the field in July.
Kristin production is scheduled to begin Oct. 1, 2005, from a reservoir almost 5,000 m below sea level. At 900 bar, its pressure and 170°C temperature are higher than in any other field developed on the Norwegian continental shelf to date.
"Given the big challenges posed by high pressure and temperature in Kristin, we're very pleased to have given Smedvig Offshore this job," said Statoil Drilling Manager Inge G Myhre.
The reservoir is to be produced through 12 subsea wells, with a production capacity of 126,000 b/d of condensate and 18 million cu m/day of rich gas.
In addition to operator Statoil, which holds 46.6% interest in Kristin, other licensees are Petoro AS 18.9%, Norsk Hydro AS 12%, ExxonMobil Corp. 10.5%, Agip SPA 9%, and Total SA 3%.