Equinor sees $1.86 billion boost from project start-up at mature field - Upstream Online

Equinor sees $1.86 billion boost from project start-up at mature field | Upstream Online

Norwegian energy major Equinor has started production from the Statfjord Ost project, in a move to strengthen hydrocarbon output from the maturing field, bringing additional supply to the market.

Equinor and its partners expect to increase production by 26 million barrels of oil equivalent from Statfjord Ost, which is located five kilometres from Statfjord C in the Norwegian North Sea.

“This proves the importance of extending the life of mature fields and maximising value creation from existing infrastructure on the Norwegian continental shelf. The project contributes to extending the life of Statfjord C to 2040,” said Equinor’s senior vice president for Field Life Extension, Camilla Salthe.

"The profitability is high, and the value of increased production equals around Nkr20 billion ($1.86 billion) at the current oil price. This is [a] good use of resources which provide ripple effects for Norwegian suppliers."

Two new wells have been drilled from existing subsea templates, and three additional wells are to be drilled. Statfjord Ost is tied to the Statfjord C platform, and the project scope included modifications on Statfjord C and installation of a new pipeline for gas lift to the subsea wells.

The oil recovery rate from the field is expected to increase from 58% to 63% as a result of this life extension project. Statfjord Ost started producing in 1994.

Equinor operates the asset with a 29.25% interest and its partners in Statfjord Ost include Petoro having 30%, Vaar Energi on 20.55% and Okea with14%.