Statoil has started production from the Fram C East well, offshore Norway, which will help boost the nearby Troll C’s production and activities.

Gas will be transported to Kollsnes through Troll A, whereas oil will be piped to Mongstad for additional processing.

Originally estimated at some NOK800m ($97m) capital expenditures have now been reduced to about NOK600m ($73m) due to a simple, smart well concept and significantly increased drilling efficiency.

Recoverable resources are estimated at 18.2 million barrels of oil and 1.6 billion sm3 of gas.

Fram C East was discovered in 2007. Statoil owns 45% of the asset, with ExxonMobil, Engie and Idemitsu holding 25%, 15% and 15% respectively.

Troll and Fram operations vice president Lars Høier said: “Fram C East is a small development project, but a key element of our plans to capture maximum value in the Fram area.”

Høier added: “We are pleased to see that our targeted efforts to cut costs and improve profitability on the Norwegian continental shelf (NCS) have benefitted this development project.

“Fram C East has seen profitability rise from good to even better, and will see a positive cash flow as early as in 2016.”

Recently, Statoil with its partners has submitted a plan for the development and operation of Byrding. If approved by the Norwegian government, production from Byrding will also be tied back to Troll C platform.

Statoil Operations West senior vice president Gunnar Nakken said: “Our strong position and role in several partnerships in the Troll / Fram area give us flexibility and possibilities to generate high value by taking an overall approach to the area, maximising the use of the existing infrastructure.

“This represents good resource management, benefitting our partners, our owners, suppliers and society at large.”

Image: Production begins at Statoil’s Fram C East. Photo: Courtesy of Øyvind Hagen.