ITALIAN energy major Eni expects that it will cost at least $5billion to develop its Norwegian Barents Sea Goliat field, based on first oil around 2012.
The plan is to develop the block 7122/7 discovery using a 100,000 barrels per day production ship and for output to be exported for processing at Hammerfest, where StatoilHydro has its Snohvit project terminal on the island of Melkoye. Include terminal costs and Eni reckons the capex figure will come in around $7billion, though with inflation now running at a very high level in the upstream sector, Goliat costs will likely come in over $1billion.
The group has started the front-end engineering and design (FEED) pre-qualification phase and expects to submit a plan for development and operation by the end of 2008, with Norwegian government approval in 2009.
Besides processing facilities at Hammerfest, Eni has stated that all base functions for supply services, helicopter services, maritime and other services will be located in the port. Associated gas will be variously reinjected and/or piped to Melkoye.
While commercially viable, Eni has stated that the Snohvit and Ormen Lange fields have reserves that are five and 10 times as large as Goliat, respectively. Reserves are in the order of 40million cu m of hydrocarbons.