Statoil buying Total interests off Norway

Statoil AS will become operator of Martin Linge oil and gas field and the Garantiana discovery offshore Norway after acquiring Total SA’s equity interests for $1.45 billion.

Statoil AS will become operator of Martin Linge oil and gas field and the Garantiana discovery offshore Norway after acquiring Total SA’s equity interests for $1.45 billion.

The transaction, which remains subject to due diligence and government approvals, covers interests of 51% in Martin Linge and 40% in Garantiana.

Development of Martin Linge, which has recoverable resources estimated at more than 300 million boe, involves a manned wellhead platform in 115 m of water about 42 km west of Oseberg field.

The main reservoir contains natural gas and condensate in high-pressure, high-temperature Middle Jurassic Brent Group sands at 3,700-4,400 m. Oil occurs in the Eocene Frigg formation at 1,750 m.

Production start was delayed until 2018 by a fatal May 1 accident at the Samsung Heavy Industries shipyard in South Korea where the platform topsides is under construction (OGJ Online, July 6, 2017). The platform jacket is in place.

A floating oil storage vessel will handle Martin Linge oil and condensate, which will be loaded onto tankers. A pipeline will carry rich gas to the Frigg UK gas pipeline.

Statoil will control operations remotely from onshore via a 160-km electrical cable, which it calls the longest AC power link in the world.

The system will cut emissions of carbon dioxide by 200,000 tonnes/year, it says.

Statoil now holds a 19% interest in the field. Petoro holds 30%.

Statoil says development options are being evaluated for the Garantiana discovery in the Jurassic Cook formation on production license 554, 15 km north of Visund field in the North Sea (OGJ Online, Nov. 3, 2014). Water depth is 380 m.

Recoverable resource potential is 50-70 million boe, Statoil says.

Other PL 554 interests are Aker BP ASA and Point Resources AS, 30% each.

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