Statoil ASA and Petoro ASA will further develop Gullfaks South field in the North Sea offshore Norway to hike recovery by 65 million bbl of oil equivalent.
The work will be a fast-track project valued at NOK 8.5 billion. It will involve two new subsea templates and six more wells tied back to the Gullfaks A platform.
Production in parts of Gullfaks South was shut down in 2008 to maintain an acceptable pressure level in the reservoir for future drilling operations. Existing wells are now being returned to production, and new wells will be drilled from existing seabed templates on Gullfaks South.
Four oil producers and two gas injectors are planned for the oil production phase, expected to go on production in 2014.
Two available well slots will provide flexibility, and further reserves could be realized, Statoil said. The project will help make use of spare processing capacity and extend the lifetime of Gullfaks A beyond 2030.
The project will be the second fast-track development to be tied back to Gullfaks for processing after Visund South in 2011. Production from the Gullfaks South Statfjord reservoir started in 1999 as part of the Gullfaks satellite development.
Statoil operates Gullfaks on PL050 with a 70% interest, and Petoro has 30%.