StatoilHydro starts Gjoa drilling program

StatoilHydro has begun its Gjoa production drilling program in the Sogn area of the Norwegian North Sea using the Transocean Searcher drilling rig. Oil and gas production is to start in 2010.

Jan 7th, 2009

Uchenna Izundu
International Editor

LONDON, Jan. 7 -- StatoilHydro has begun its Gjoa production drilling program in the Sogn area of the Norwegian North Sea using the Transocean Searcher drilling rig. Oil and gas production is to start in 2010.

The field has estimated reserves of 82 million bbl of oil and condensate and 40 billion cu m of gas. There will be 13 wells in the field; nine oil wells and four gas wells. The rig's upgrading for Gjoa has cost 200 million kroner. It will carry out operations until 2012.

StatoilHydro's first is an appraisal well on the northern section, which will help it to determine the drainage strategy and identify locations for the other wells.

Gjoa development
Gjoa's thin zones in the reservoir will be drained using relatively demanding wells, of which several will be multilateral.

The 30 billion kroner development will see oil and gas produced via a semisubmersible platform and five subsea templates. The topside will be constructed in Korea and shipped to Stord, where the living quarters will be built. The platform will be assembled this summer.

Gas will be delivered through a 130-km pipeline to the British Flags pipeline for further transport to Scotland. Oil will be pumped through a 55-km pipeline to Troll field in the North Sea and sent from there through the Troll II oil pipeline to the StatoilHydro-operated Mongstad refinery north of Bergen.

The oil and gas pipelines will be laid this year with a power cable supplying electricity to the field in 2010.

Vega, Vega South
The Vega and Vega South satellites will be developed with subsea installations and tied back to Gjoa. The total development of Gjoa, Vega, and Vega South currently is the largest development project on the Norwegian continental shelf. It will open a new part of the North Sea to oil and gas production, StatoilHydro said.

Early this year, StatoilHydro will test the subsea systems for Vega and Vega South and in the second quarter will install the subsea templates. "At the same time pipes will be laid, structures will be installed, and tie-ins will be carried out," StatoilHydro said. "When the subsea systems are ready, drilling can start as scheduled in July 2009."

During 2009, StatoilHydro will have up to 20 vessels in the Gjoa area.

StatoilHydro is operator of the development, and Gaz de France will assume operatorship at production start-up.

The shareholders are Gaz de France 30%, Petoro 30%, Norske Shell 12%, RWE Dea Norge 8%, and StatoilHydro 20%.

Contact Uchenna Izundu at uchennai@pennwell.com.

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