Norway has approved Statoil’s development plans for the Njord and Bauge fields.
The Njord A platform and the Njord Bravo floating storage and offloading vessel (FSO) will be upgraded to help recover more resources from the Njord and Hyme fields.
Njord and Hyme are thought to hold another 175 million barrels of oil equivalent.
Bauge is a new field development which will be tied into Njord A.
Torger Rød, Statoil’s head of project development, said: “We are pleased that the authorities have now approved the plans for Njord and Bauge, two important fields on the Norwegian continental shelf.
“The investments, totalling NOK 20 billion, will trigger high activities and spin-offs for the Norwegian society and Norwegian supply industry.”
The original development plans for Njord were submitted more than 20 years ago.
The field will now produce for another two decades.
Kværner’s base at Stord has been awarded the contract for upgrading Njord A.
The contract for upgrading the Njord Bravo FSO will be handed out next year. First oil is scheduled for the end of 2020.
Faroe Petroleum holds 7.5% interests in both Njord and Bauge.
Faroe chief Executive Graham Stewart said: “We are delighted at the efficient progress Statoil is making with this important project.
“The economics of this project remain very attractive and will make a significant contribution towards Faroe’s planned production and cash flow growth.
“We have a material and strategic position in the Greater Njord Area through our working interests in the Njord, Hyme and Bauge fields (Faroe 7.5%), as well as the neighbouring Fenja (formerly Pil and Bue) field (Faroe 25%), which are to be tied in subsea to the Njord field host.”