North Sea giant Statoil is to build a new platform on the Snorre field as it looks to extend the life of the $4billion project until 2040.
The future of a project to significantly extend the life of field, which is in the southern part of the Norwegian Sea, had been in doubt after the country’s government looked to increase taxes earlier this year.
But now Statoil and Petoro, along with partners ExxonMobil, Idemitsu, RWE Dea and Core Energy are to look at adding a new third platform to the field, which could extract a further 300million barrels from the site.
“The platform solution is the best alternative for maximising production and creating the greatest possible value,” said Statoil’s vice president for the region, Øystein Michelsen
“Snorre 2040 is an important improved oil recovery (IOR) project and supports our ambition of achieving an average oil recovery rate of 60% from our fields on the Norwegian shelf.”
The partners had looked at two potential methods for extending the life of the field – a third platform, or a new subsea development which would make use of the existing Snorre A and B rigs.
The new facilities would be tied into any new discoveries in the area, and linked to a new gas pipeline planned for the Gullfaks or Visund fields.
The proposed new platform would increase drilling capacity. Modifications to the existing platforms on the field would also see them stay in place until 2040
A final decision on how to develop the field is due in early 2015.
“Snorre 2040 is a huge project with significant investments, but it will also yield substantial value,” said Michelsen.
“Thorough preliminary work is important to arrive at the best possible solution. We are also seeing marked rising costs in our industry and we must ensure that value creation is optimal. The change in the petroleum tax rules that was adopted in May also undermines the financial conditions of Snorre 2040, which means that we have to spend more time on maturing the project.”
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