Statoil and its partners will invest NOK1bn ($122m) in a new project in the Fram licence to increase production from the Norwegian North Sea oil and gas field.
The investment will be used for a new gas module that will come up on the Troll C platform. According to Statoil, the module installation is anticipated to grow oil production and gas exports from Fram while making the field conducive for further development.
Statoil says that the investments are important for the further development of Troll C as a hub for the Troll C and Fram region. The module is also expected to boost the profitability of the Troll C installation by expanding and accelerating production through enhanced gas capacity.
Statoil tie-back and brownfield projects vice president Siv Irene Skadsem said: “Statoil is pleased that we, together with the partners, have made an investment decision for this strategically important project.
“By using standardised solutions and equipment, in addition to focusing on making this a maximum lean project, and working closely with Statoil’s operations and suppliers, we have come up with a very cost-efficient and profitable gas module.”
Statoil has given the engineering, procurement, construction, and installation (EPCI) contract for the Troll C gas module, which is valued at around NOK600m ($73m), to Norwegian service company Aibel.
Under the contract terms, Aibel will handle the engineering of the 470-tonne gas module which will be fabricated at its Haugesund yard. The project is slated to be ready by 2019 end.
Statoil says that the investment decision has been taken after reaching an agreement with the partners in the Troll licence.
Statoil operations west senior vice president Gunnar Nakken said: “The new gas module at Troll C will accelerate production from Fram by considerable and profitable volumes.
“Consequently, we will be able to mature more wells and explore for new resources in the Fram Area, which all together will make it possible to extend the economic life time for the field.”
The Fram field is located in the northern part of the North Sea, about 20km north of Troll and is contained in nearly 350m of water depth.
Statoil has a stake of 45% in the Fram license and is partnered by ExxonMobil Exploration and Production Norway (25%), ENGIE E&P Norge (15%) and Idemitsu Petroleum Norge (15%).
Image: Illustration of the new gas module on the Troll C platform. Photo: courtesy of aibel.