Centrica Energy Norway and its partners will develop the Butch discovery in the North Sea as a subsea tie-in to the Ula field.
Several options had been evaluated for the field which was discovered four years ago in the Norwegian part of the North Sea.
Two options – a tie-in or standalone production jack-up solution – were assessed for the site which has estimated recoverable reserves of between 27million and 51 million barrels of oil equivalent.
Centrica Energy is operator of the licence with a 40% share while partners Suncor Energy and Faroe Petroleum have 30% each and Tullow Oil has 15%.
The selected concept means the Butch well stream will be transported to the BP operated Ula platform 13km away.
Oil will then be exported through the Ula oil export pipeline to Ekofisk and onwards into Norpipe to Teeside terminal in England.
Produced gas from Butch will be injected into the Ula field to reservoir to improve oil recovery.
Henning Eide, Butch development manager at Centrica Energy Norway, said: “This is an important milestone for the Butch development project. The subsea tie-in is an innovative solution re-using the Oselvar infrastructure at the Ula platform. The chosen concept secures a predictable, safe and cost efficient delivery of the Butch development.”
Centrica said the target of the concept evaluation was to develop the Butch resources utilising environmentally friendly and proven field technology to ensure a safe and economically sound development.
Total estimated investments in the Butch project are estimated to be between £500million and £600million.
A final investment decision is not expected to be taken until late 2016.
Eide added:“The selected concept is an efficient solution that is seen as the best HSE concept, combined with robust economics.
“It also connects the field to a capable and experienced host operator.”
Production is planned to start in 2019, with a peak production of 35,000 barrels of oil equivalent per day.
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