Statoil Submits Plan for Snorre Expansion Project

Statoil has submitted a plan for development and operation (PDO) of the Snorre Expansion Project to the Norwegian authorities on Thursday.

In addition to the PDO being submitted, Statoil is also signing contracts worth NOK 9 billion for the project, located in the Tampen area offshore Norway.

The company signed the contract for the subsea production system with TechnipFMC, fabrication and installation of the pipeline bundle system with Subsea 7, modification work on Snorre A with Aibel and a rig deal with Transocean.

All contracts are subject to final approval of the PDO by Norwegian authorities.

Snorre Expansion has been a marginal project, and Statoil has worked closely with partners and suppliers to realize it. We have finally arrived at a good concept utilizing existing infrastructure and reducing costs,” said Margareth Øvrum, executive vice president for Technology, Projects and Drilling.

This investment will increase recovery from the Snorre field by close to 200 million barrels. The life of Snorre A was originally expected to last until 2011–2014. Now the Snorre field is expected to produce beyond 2040, Statoil said.

“Snorre Expansion is the largest improved oil recovery project (IOR) on the NCS, and provides valuable production and activity benefiting the company, partners and society. Investment costs slightly exceed NOK 19 billion, and the PDO involves a comprehensive subsea development, upgrading of the Snorre A installation, increased gas injection and gas import for injection,” said Arne Sigve Nylund, Statoil’s executive vice president for Development and Production Norway.

Snorre Expansion is expected to start production in 2021, and will be operated and maintained by the existing Snorre organisation in Stavanger, while supplies will still be handled by Fjordbase in Florø.

Statoil is the operator of the field with 33.27%interest, Petoro holds 30%, ExxonMobil Exploration and Production Norway 17.44%, Idemitsu Petroleum Norge 9.6%, DEA Norge 8.57% and Point Resources holds 1.1%.