STATOIL is looking to develop the Barents Sea Skrugard discovery by means of a floating production unit equipped with enough capacity to process and transport hydrocarbons from other potential prospects in the area.
The Skrugard floater would have separate oil storage and offshore loading capability with a production capacity of 95,000 barrels of oil per day.
Statoil’s feasibility study points to subsea infrastructure comprising 14 production wells and pressure support provided via injection wells for water and gas. Water depth averages about 380m.
The discovery was made in April 2011. Well (7220/8-1) encountered hydrocarbons at about 1,250m below sea level, in a water depth of 370m. The drilling was carried out with Transocean’s Polar Pioneer rig specially built for the Arctic.
The Skrugard prospect has proven oil in the Bear Island fault zone, which is located farther north in the Barents Sea than Hammerfest Basin, where the Snøhvit and Goliat fields lie.
Skrugard is the third well drilled in the Barents Sea in 2010-11. Both Statoil and Eni had previously drilled dry wells on Lunde prospects.
The find’s recoverable reserves are estimated to be around 250million barrels oil equivalent, but with “considerable” upside potential.
However, there are several prospects in the near vicinity and Statoil will now look into the possibility of including further discoveries in a cluster-style development solution.
“We are now entering a phase where we will set up the team that will continue working on Skrugard,” said Statoil’s operations VP, Erik Strand Tellefsen.
“We will improve our understanding of the resource basis, study several alternative development solutions and decide on the concept, as well as plan for operations.
“We are drawing upon our own and our partners’ experience and the lessons learned on Goliat (operator is Eni) and on our fast-track developments.
“Skrugard will mainly be based on familiar technology, while making allowances for harsh weather regions. The project team will be located in Harstad, apart from the construction site section, which has been placed in Oslo.”
Metocean data and soil mechanics are already being collected.
The project will be matured in parallel with the semi-submersible rig Aker Barents’ drilling of an exploration well on Havis – a prospect located roughly 5km from the Skrugard discovery, but within the same licence.
Following drilling on Havis, the rig will drill an appraisal well on Skrugard. Based on the results from these two wells further exploration drilling will be considered.
Skrugard is situated outside the established infrastructure in what is considered to be a prospective area. This is why the Skrugard development is seen as an opportunity to establish a new hub in the northernmost region on the Norwegian Continental shelf (NCS) to be developed thus far.
Statoil claims that its oil-related activities will be capable of co-existing with the region’s important fishing industry.
The company expects that the development will have a beneficial impact on technology and competence building in the supplier industry – especially in northern Norway.
Skrugard lies in the Barents Sea, some 100km north of the Statoil-operated Snøhvit field, 150km from Eni’s Goliat development and almost 230km from the receiving and gas processing terminal at Melkøya.
Licence partners comprise Statoil 50% (operator), Eni (30%) and Petoro 20%.