Storting approves Statoil's Gjøa field development

Statoil ASA will develop the Gjøa field through subsea-completed wells tied back to a semisubmersible platform under a plan approved by Norway's parliament, the Storting.

Jun 18th, 2007

Uchenna Izundu
International Editor

LONDON, June 18 -- Statoil ASA will develop the Gjøa field through subsea-completed wells tied back to a semisubmersible platform under a plan approved by Norway's parliament, the Storting.

Gjøa, which is expected to start oil and natural gas production in 2010, will deliver gas via the UK Flags pipeline to St. Fergus, Scotland. Oil will be transported to the Troll II line and then to the Statoil-operated Mongstad refinery, north of Bergen.

The partners still have to review the approval terms and conditions of the economically marginal project, said Tim Dodson, acting executive vice-president, exploration and production, Norway. Gjøa, however is significant for Statoil because its reserves will enhance production and returns.

Statoil will tie Gjøa back to the Hydro SA-operated Vega and Vega South fields to help the profitability of the project. Electric power for the field will come from land by coordinating power from the Mongstad energy project's combined heat and power (CHP) station.

The Norwegian Water Resources and Energy Directorate is considering the application for onshore power with the Statoil-operated CHP station expected to start operations in 2010.

Statoil is development operator with Gaz de France as production operator.

Interests in the Gjøa license are Gaz de France 30%, Petoro SA 30%, Statoil 20%, Royal Dutch Shell PLC 12%, and RWE Dea AG 8%.

Contact Uchenna Izundu at uchennai@pennwell.com.

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