StatoilHydro plans Troll updates

StatoilHydro has submitted a new plan to develop and to operate Troll field to ensure the long-term management of the oil and gas reserves in Norway's largest gas field.

Offshore staff

STAVANGER, Norway -- StatoilHydro has submitted a new plan to develop and to operate Troll field to ensure the long-term management of the oil and gas reserves in Norway's largest gas field.

The plan was submitted to the Ministry of Petroleum and Energy and is a step towards improved oil recovery on Troll West, while providing for continuation of the current gas export capacity from Troll East.

The plans maintain a gas production level of 120 MMcm/d (4,238 MMcf/d) until a need for further compressor capacity arises due to pressure drop in the reservoir.

The Troll partners' new plan has an investment limit of almost NOK10 billion ($1.97 billion). It includes a new gas injection plant for improved oil recovery on the Troll B platform, and a new 35-in (89-cm) rich gas pipeline from the Troll A platform to the Kollsnes gas plant, and modifications on Troll A and the Kollsnes terminal.

Production pipes in the gas wells running up to Troll A in the Troll East area will be replaced and the diameter of the pipes will be increased, for lower pressure drop and increased production from the wells.

Gas injection in Troll West will increase the oil reserves at Troll by 17 MMbbl.
Offshore modifications are scheduled to start during 2008. The gas injection plant will be in place by the end of 2010. The new rich gas pipeline will come on stream in 2011.

"The new development plan is an overall description of our plans for the oil production at Troll and provides for profitable oil production through 2030. This will also result in increased production possibilities for neighboring fields, as we will have processing capacity available for a longer period than previously expected," says Hege Norheim, senior VP for reserve and business development.

The Troll oil production system consists of more than 110 horizontal wells, several of which are multi-lateral.

Horizontal high-precision drilling and production wells with up to six producing wellbores have been developed in collaboration with StatoilHydro's drilling and well technology suppliers.

There are three chartered rigs currently drilling production wells on the field. Long-term contracts have been signed in order to maintain the drilling activity at this level.

06/27/2008

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