Norway: Statoil Focuses on Improved Recovery
- Business & Finance
Norwegian energy company Statoil has matured more reserves through improved recovery than the Skrugard and Havis discoveries combined in 2011. The company is now strengthening its focus on improved recovery.
“2011 will always be remembered for the major finds on the Norwegian continental shelf (NCS), while at the same time we have completed a great year with regard to improved recovery. We have matured more volumes through improved recovery efforts than the Skrugard and Havis finds combined,” says Øystein Michelsen, executive vice president for the NCS.
Statoil delivered six plans for development and production and matured around 560 million barrels of oil equivalent Statoil shares for the large NCS projects during 2011.
Of these volumes 420 million barrels of oil equivalent are the result of improved recovery alone.
“Statoil’s main improved recovery projects in 2011 were Troll 3 & 4 compressors and Åsgard subsea gas compression,” says Michelsen.
“They accounted for 350 million barrels of oil equivalent in improved recovery alone for Statoil. In addition we have the volumes resulting from our drilling and well activities and improved recovery from small and large modification projects on our NCS installations.”
The total investments on Troll and Åsgard subsea compression amount to NOK 26 billion.
“Åsgard subsea gas compression will be the world’s first subsea compressor and is a good example of how pioneering technology can help extend the life of our existing NCS fields. We want more technology breakthroughs and is stepping up our technology effort,” says Siri Espedal Kindem, Statoil’s head of technology.
Statoil’s research activities have been increased by 27% and will amount to NOK 2.8 billion in 2012. Furthermore the company plans to expand the research centre at Rotvoll in Trondheim to accommodate the largest improved recovery centre in Norway.
Improved recovery is also key in Statoil’s new technology strategy in which four prioritised technology areas have been identified:
- Seismic imaging and interpretation.
- Reservoir characterisation and recovery
- Drilling and well construction
- Subsea production and processing
“Technology for better reservoir understanding can alone add reserves of 1.5 billion barrels of oil equivalent to our global portfolio by 2020. In addition we will focus on technology that will reduce drilling time by 30% and drilling costs by 15% by 2020. If we succeed in developing a subsea factory, it will lead to improved recovery, reduced costs and lower energy consumption in the further development of the NCS,” says Kindem.
Offshore Energy Today Staff, January 17, 2012; Image: Statoil