Statoil Makes $600 Mln Investment Decision for Smørbukk South Extension Project

Statoil Makes $600 Mln Investment Decision for Smørbukk South Extension project

Statoil and the partners in the Åsgard Unit have today decided to realise the Smørbukk South Extension project offshore Norway.

Smørbukk South Extension holds estimated recoverable reserves of 16.5 million barrels of oil equivalent, and will be developed with a new subsea template connected to existing infrastructure in the area. The recovered gas will be reinjected in the reservoir in order to maintain the reservoir pressure as oil is drained out. The field will be connected to the Åsgard A installation (FPSO).

“We’ve matured a profitable project out of a discovery from 1985. Experience from Åsgard operations, existing infrastructure and a bit of patience have contributed to an investment decision for this project.

 “In addition we will consider the use of a new well technology that will increase the recovery from this type of reservoir. Smørbukk South Extension is a strategically important project that emphasises our ambitions to increase recovery from mature areas,” says Astrid Helga Jørgenvåg, Statoil’s asset owner for Åsgard.

The Smørbukk South Extension project development will be based on standard equipment. Pre-investments have been carried out in order to minimise the time from project sanction to production start-up.

Statoil will now award several contracts for the development. Nexans was awarded the umbilical contract last year.

Drilling operations are planned to start in early 2015, and production start-up is planned for September 2015. The lifetime of Smørbukk South Extension is estimated to be 12 years.

“With the investment decision for Smørbukk South Extension, another piece in the puzzle is now in place for the development of the Åsgard field. The project will contribute to the prolonged lifetime on Åsgard A and will facilitate the development of other projects and prospects in the area,” says Ola Gussiås, Statoil’s project manager for the Smørbukk South Extension project.

The total investments are estimated to be about NOK 3.5 billion (USD 600 million).

Press Release, March 20, 2013