Statoil to expand Smørbukk South development offshore Norway

Statoil and its partners in the Åsgard Unit in the Norwegian Sea have committed to the $600-million Smørbukk South Extension project.

Offshore staff

STAVANGER, Norway – Statoil and its partners in the Åsgard Unit in the Norwegian Sea have committed to the $600-million Smørbukk South Extension project.

Åsgard takes in production from the Smørbukk, Smørbukk South, and Midgard fields, which have been developed through theÅsgard A FPSO, the Åsgard B semisubmersible platform, and the Åsgard C FSO.

Smørbukk South Extension holds estimated recoverable reserves of 16.5 MMboe, and will be developed with a new subsea template connected toÅsgard A with spare slots for future wells. Statoil plans to put in one multi-lateral well with two oil-producing branches and a gas injector well.

Recovered gas will be re-injected into the reservoir to maintain reservoir pressure as oil is drained. The field will be connected to theÅsgard Ainstallation (FPSO). Statoil may also adopt new well technology to increase recovery from this reservoir.

Otherwise the development calls for standard equipment. Pre-investments have been performed to minimize the period from project sanction to start-up.

Nexans was awarded the umbillical contract last year, and Statoil will issue more contracts soon.

Drilling should start in early 2015, followed by first production in September 2015. Statoil estimates the productive life span of Smørbukk South Extension at 12 years.

Other partners are Petoro, Eni Norge, Total E&P Norge, and ExxonMobil.

3/20/2013

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