Statoil plans to accelerate field development off Norway
Eric Watkins
OGJ Oil Diplomacy Editor
LOS ANGELES, Mar. 17 -- Norway’s Statoil ASA plans to halve the time from discovery to production in selected fields on the Norwegian Continental Shelf, according to a senior company official.
Stale Tungesvik, head of reserves and business development for Statoil, said a quicker development time is an important means of realizing the firm’s target of maintaining current levels of oil and gas production on the NCS.
Tungesvik said Statoil has identified four projects for acceleration:
• Katla, which is to be developed as a satellite of the Oseberg Sor field. Production is due to start at yearend 2012.
• Vigdis Nordost, which is to be developed as a satellite to the Snorre field and is due to come on stream in 2012.
• Gygrid is to be developed as a satellite of the Draugen or Njord fields and is expected to be deployed in 2012-13.
• Pan/Pandora is to be developed as a satellite to the Visund or Gullfaks fields. Production start is due in 2012.
Tungesvik said the new work methodology involves “a higher extent of standardization of development solutions.”
Meanwhile, Statoil said three of four discoveries made since 2007 are classified as small. It also said 9 of 10 development candidates are likely to be developed with one seabed template and several wells.
Tungesvik’s announcement coincided with reports that Statoil awarded a contract to Fred Olsen Energy ASA subsidiary Dolphin AS and a letter of intent to Seadrill for two rigs to operate on the NCS. Both rigs are working for Statoil at present.
The Bideford Dolphin semisubmersible rig won a $421 million 3-year contract with start-up from Jan. 27, 2011. Statoil has an option to extend the contract to 4 years by Nov. 1 with the value of the contract increasing to $553 million.
Seadrill’s heavy-duty jack up West Epsilon rig was awarded a letter of intent for a 4-year contract effective Dec. 29 and valued at $394 million.
Statoil can extend the period of the Seadrill contract, which is conditional on partner approval, to 5 or 6 years before Oct. 1. There will also be an option to extend the contract for an additional 2 years.
Anders Opedal, Statoil’s senior vice-president for procurement, said rig rates are now at a more sustainable level than at the height of the global economic downturn.
“We see that the cost level for rig charter is better adapted to the current market situation, and we look forward to continuing cooperation with the two rigs,” said Opedal. “They will play an important part in helping us reach our production targets for the NCS in the next few years.”
Contact Eric Watkins at [email protected].