Norwegian authorities have approved a revised plan Statoil submitted for development and operation (PDO) for the Åsgard Q project in the Norwegian Sea.
This scheme involves the installation of a third (Q) template on the field's Smørbukk South deposit, tied back to the Åsgard A production ship.
The template was recently stabilized on the seabed, with the first well to be drilled through this structure spudded on April 28.
After Statoil determined that drainage of Smørbukk South is not optimal with the existing well pattern, the company launched a project in 2003 to improve oil recovery from the reservoir.
"Åsgard Q will allow us to get an additional 26 MMbbl of oil out of this deposit," Åge Kristensen, sub-surface manager for Smørbukk South, said.
Investment in the project, which also includes two parallel flowlines running 13 km from the template to Åsgard A, is NKr1.7 billion.
This project will be one of the fastest subsea developments on the Norwegian continental shelf, taking just over a year to complete from PDO submission to first oil.
Production from the Q template will start on Jan. 1, 2005.