STAVANGER, Norway– Statoil and its partners have submitted the plan for development and operation and the field development plan for the Utgard gas and condensate discovery in the North Sea to Norwegian and UK authorities.
Recoverable reserves are estimated at 56.4 MMboe, whereas capex is projected at about NOK 3.5 billion ($416 million).
Discovered in 1982 Utgard (formerlyAlfa Sentral) is 21 km (13 mi) from the Sleipner field. Utgard straddles the UK-Norway median line, the majority of the reserves are on the Norwegian side.
The Utgard development will include two wells in a standard subsea concept, with one drilling target on each side of the median line. All installations and infrastructure being located in the Norwegian sector, the UK well will be drilled from the subsea template on the Norwegian continental shelf. The distance from the subsea template to the median line is 450 m (1,476 ft).
Gas and condensate will be piped through a new pipeline to the Sleipner field for processing. After processing the liquids will be exported to Kårstø and the dry gas to Gassled.
The Utgard gas has a high CO2 content, and will benefit from carbon cleaning and storage at Sleipner. Statoil says the reuse of existing infrastructure is essential to the development of the Utgard discovery.
Production is expected to start at the end of 2019. In the plateau phase the field will produce about 7,000 cu m per day of oil equivalent.
In the Norwegian sector (PL046), Statoil is the operator with 62%. The other licensees are LOTOS E&P Norge AS with 28% and TOTAL E&P Norge AS with 10%. In the UK sector (license P312), Statoil UK is the operator with 100% interest.
Torger Rød, Statoil’s senior vice president for project development, said: “Utgard is the first Statoil development in many years producing resources across the median line, and we are pleased to have found good solutions that address considerations for good resource management on both sides.
“Good and efficient cooperation across the board, both in relation to partners and government authorities, has made this development possible. Utgard provides new production which will be essential to further developing the Sleipner area, supporting the company’s ambitious targets for future activity and value creation.”